Sunday, August 12, 2012

Q&A: Should I save my money as Euros instead of Dollars? | Gold ...

Q&A: Should I save my money as Euros instead of Dollars?

I?m finally about to get my career underway. I?m a pretty frugal person, so even though the initial pay isn?t fantastic I should be able to save at least $ 10,000 in the first year while I pay off all of my credit card debt and auto loan debt. From then on out it?s about 24k of structured student loans.

Each subsequent year, I should be able to save at least $ 20,000. So over the course of 5 years with a small amount of interest, I should have $ 100,000 saved. I would like to put this toward the purchase of a house. Hopefully the housing market will be stabilized and deflated by then so I can make a wise investment. (Yes, deflated.) See http://www.businessinsider.com/the-housing-chart-thats-worth-1000-words-2009-2

Here?s where I?m uncertain. The dollar is volatile, to say the least. If I hold onto my assets in the form of dollars, then my $ 100,000 in 2014 could have the buying power of 50k of today?s dollars, or even 20k or worse.

Would I be wise to convert the balance of my savings account into Euros? Can I even do that in a domestic bank, or would I have to open an overseas account? I?m trying to anticipate a solid way to save my money and maintain its buying power through thick and thin. I would be stupid to put money on a house before the upcoming Option-Arm housing crisis runs its course and the market loses another $ 1-2 trillion.

I?m even contemplating buying gold (not gold ?investing? as you see on those commercials, but physically owning gold coins), but that comes with a whole other set of concerns for keeping it safe.

goldsenze.com Answer:

Good luck in your career, you didn?t mention what field. I don?t think the housing market can go much lower. I?d sit on the side lines with cash in hand and look for a good deal. If you aren?t willing to save in American dollars, perhaps you should move out of the country. It?s going to take the American Spirit to survive this downturn.

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