Ideas for holding USD?

[DimPrawn]

<sound of alarm bells ringing>

"DP it's time to wake up and goto work, those bins aren't gonna empty themselves"

[OwlHoot]

Have been looking at property for holiday rental in Florida, good value at the moment (a giant Mc Mansion for about £500K), but it's not a very liquid market ..

It might be a more liquid when your mansion is under the sea, along with much of the rest of Florida.

Oops, sorry, I forgot, you don't believe all that stuff about global warming.

[AtW]

Don't forget annual strong winds in Florida...

It might be no Kansas but your mansion may still end up in a land far far away...

[DimPrawn]

http://www.rightmove.co.uk/overseas-...-24692900.html

Probably yours for £500K.

I'm tempted to buy into a US property like that, but need to understand the holiday letting yield after costs.

[AtW]

http://www.rightmove.co.uk/overseas-...-24692900.html

Probably yours for £500K.

I'm tempted to buy into a US property like that, but need to understand the holiday letting yield after costs.

So you want to buy a house in a country that you might be forbidden to visit at all?

It sure looks like a proper house got good price, but unless you can live locally it's one tulip of a risk.

[Churchill]

Got a wedge of sterlings. Now, just to reduce risk, some is in gold (BullionVault) and some is in other investments, but I've still got a good part of it in GBP.

To reduce risk if sterling collapses, I'd like to hold some in USD.

Now, I could buy US equities or bonds, but I fear these are overpriced and ready for a correction.

I could open a Cater Allen USD bank account here, but switching to and from USD will hit me with 2% loss in exchange rate difference and no interest. I might do this based on sterling probably losing another 20% against USD in 2010.

Any other suggestion for holding something in USD that is not likely to lose value and might even go up if the dollar rallies against the pound?

TIA

What you do have is loads of bullsh!t...

[DimPrawn]

So you want to buy a house in a country that you might be forbidden to visit at all?

It sure looks like a proper house got good price, but unless you can live locally it's one tulip of a risk.

He who dares Rodders, he who dares.

[Xenophon]

http://www.rightmove.co.uk/overseas-...-24692900.html

Key Features:

MOTIVATED SELLER

How American.

[Iron Condor]

I could open a Cater Allen USD bank account here, but switching to and from USD will hit me with 2% loss in exchange rate difference and no interest. I might do this based on sterling probably losing another 20% against USD in 2010.


TIA

You could open an account with an FSA registered FX broker.
Then you pay virtually nothing for the FX conversion.

The inter bank FX spreads are about 0.01%, which is much lower than the 1+% the high street banks charge.

I can highly recommend www.interactivebrokers.co.uk (IB), who i use everyday.

[suityou01]

Got a walter Mitty character flaw and need to wax lyrical on here about my ficticious bullion holdings to satisfy my conditionTIA

USD will collapse. You know this. Why oh why would you want a USD position to hedge against GBP collapse.