currency question re: devaluing pound

[db08]

Hi, with the pound devaluing, I have thought about changing some money into dollars, in the hope that the pound will fall further, allowing me to change my money back into MORE pounds (albeit "devalued" pounds).

Is this a worthwhile investment opportunity? Just that, instead of having £5k in savings (for example), I'd like to have £6k, if you see what I mean.

Okay P+P, that's my idea, now it's up to you guys to pick holes in said idea

[blueyes]

Brilliant idea!

I'm surprised people don't do this for a living.



Oh hang on.... they do.

[g4ry13]

Feasible...but unlikely. I don't like your chances of a 20% increase. If you said this at $2 or even $1.90 i'd have said it was a great idea.

Edited by g4ry13 on Tuesday 18th November 10:16

[Mr Whippy]

But what happens if the dollar does a dive relative to the pound? I have no idea why, but it seems to be clawing onto something, but whatever it is there is just as much chance they come sliding down too, as us carrying on dropping against them.

So, it's a big gamble.

Better not to put £1000 on black for a possible £1000 return and £6000 in the pot? Much quicker, and fun, and probably fairly similar chances in the current uncertain times.

Dave

Edited by Mr Whippy on Tuesday 18th November 10:24

[Bing o]

You missed the boat somewhat....

Great business idea though, have you thought about approaching one of the trading desks at an investment bank?

[Zod]

Unless you are a major player, the spreads you will be offered will mean that you need a large price movement in order to make a worthwhile profit.

[trimbo]

db08 said:

Just that, instead of having £5k in savings (for example), I'd like to have £6k, if you see what I mean.

I see what you mean.

You prefer more to less. That's precisely the mindset behind some of the world's most successful investors, Soros, Buffet, Packer, I could go on. The way I see it, you're already half way there, get a spread betting account and go for it. Now. In size.

[Maxf]

db08 said:

Is this a worthwhile investment opportunity? Just that, instead of having £5k in savings (for example), I'd like to have £6k, if you see what I mean.

You are thinking small. Instead of £5k I'd sooner have £500k.

You've got the idea though!