Buying Dolars

[OliPolo]

Hi

I'm looking into the best way to get a slight return off about 8000 within an undetermined length of time (might be traveling in 6 months time or even putting it towards another car) and have been told by my girlfriends Mum that she heard buying dollars is a good investment at the moment. How true is this? And also is it as simple as just exchange my money for a load of dollars? Appologies for my lack of knowledge on the matter but i figured that someone on here may be able to enlighten me?

Oli

ETA: I realise that in my rushed typing i spelt dollars incorrectly!

Edited by OliPolo on Monday 10th May 15:38

[Chris_]

Hi, GBP/USD is currently 1.4919 which below the long-term average (roughly 1.60 if you look back over the last 3 years). The biggest problem is not trying to work out which way the exchange rate is going to move which is hard enough, but the costs involved in changing a relatively small (in foreign exchange terms) amount of money. With £8k assuming you avoid the bank and use an independent fx co you are going to be paying something like 1-3% "spread" which is the difference between what you will pay and the actual market rate. When you come to sell your dollars you will be subject to a spread again. In effect you might have to see a movement in your favour of several percent just to get your money back.

Personally, I would look elsewhere