posted on Jan, 7 2009 @ 05:45 AM
The problem with holding your assets in a foreign currency is of course that the exchange rate varies, and whilst it is possible for the cunning and
knowledgeable to make a profit, it is also possible to make a substantial loss.
Gold and silver prices are set each day by a handful of men and the values are set to their agenda and not ours. If our domestic currency nosedives,
then we are also worse off, and those people who pull the financial strings in the global economy will make themselves richer, but not us, Joe Public.
The same is true of commodity prices which can fluctuate significantly.
I knew a British family who lived and worked in Spain and their earnings were at the time in Spanish Pesetas. They did their banking in Gibraltar, and
had been advised to have their mortgage on their Spanish villa in Swiss Francs (CHF), as it was a very stable currency. Well the Peseta/Franc exchange
rate actually became adverse and the family found out after the first two years of the mortgage, that they owed substantially more than when they
first took it out.
Even experts can get it wrong, so be very careful with currency dealing.