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The comeback of the dollar

10 June 2008 Sören Zschoche 16 Comments Money

5 years ago you had to pay 0,80 US-Dollar to receive one Euro, now 5 years later in 2008 you have to pay two times the price. That´s enormous, the Euro has won 100 % in value against the Dollar in just 5 years and achieved it´s all-time high on the 22.04.08 with a exchange rate of 1,6018. By the way, this was seemingly so exciting that even Europe’s yellow press took notice of it and came up with headlines like “Shopping for the half price” or “Visit New York, now”. I had to laugh when in November 2007 the international Supermodel Gisele Buendchen explained that from now on she will only accept Euro for her payment. The European exports went down and particularly the world export champion Germany yammered very much.

So the question is how long will the dollar fall in price? Sure thing is that the dollar will come back, so don´t worry. The question is when it will happen, which is not easy to answer. However, in my opinion the dollar will come back either in the next month or at the latest just after the U.S. elections.

Here´s why:

The first and most important reason for my theory is fact that the FED can´t relax the monetary policy anymore and the FED wouldn´t do that neither. On tuesday the third of Juli, for example, even Ben Bernanke the chief of the FED did something which is extremely rare for the FED he spoke about the exchange rate of the US-Dollar and claimed the U.S. Dollar is sharply underrated. And even though also the EZB, the European central bank, has announced to rise the bank lending rates again in my opinion the comeback will come.

Because whereas Europe and the rest of the world are slipping in a recession the weak dollar is helping the U.S. economy to get better through the crisis. Companies like IKEA, Toyota or BMW are investing huge amounts of money in in the U.S. now, the U.S export will grow while the imports will decrease. That all will help the dollar to recover. There is only the impulse from the FED missing but that surely will come right after the elections or even earlier.

But nobody can exactly know how the markets will behave so don´t take my words at face value, it´s just an opinion…

The Most Expensive 2 Euro Coins.

25 February 2008 Sören Zschoche 104 Comments Money

You think that every 2 Euro coin is worth 2 Euro ? I say that´s definitely wrong and perhaps also in your money bag there are treasures you did´t recognise before. So check it up because with a bit luck you´ll get the 400 fold of your coin back when you sell it to the right person.

For example the 2 Euro Vaticano proof of 2002 was recently traded to 400 € per coin. Although it´s very unlikely that you will find such a coin in your pocket the treasure hunt would be profitable, because there are many other 2 Euro coins which are worth more than 2 Euro. For clarification here are the top ten of the most expensive 2 € coins.

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  1. Place : 2 Euro Vaticano 2002 Proof 401 Euro
  2. Place : 2 Euro Monaco 2007 BU Grace Kelly 302 Euro
  3. Place : 2 Euro Monaco 2001 BE 269 Euro
  4. Place : 2 Euro Monaco 2006 BE 189 Euro
  5. Place : 2 Euro Luxemburg 2005 Proof Henry+Adolphe 131 Euro
  6. Place : 2 Euro Vaticano 2005 BU Sede Vacante 116 Euro
  7. Place : 2 Euro Vaticano 2003 Proof 112 Euro
  8. Place : 2 Euro Vaticano 2006 Proof 100 Euro
  9. Place : 2 Euro Monaco 2004 BE 93 Euro
  10. Place : 2Euro Vaticano 2004 Proof 91 Euro

Note: The prices for the coins are balancing so don´t worry if you pay less or more now. For the currently prices you can use Ebay.

Enhancement in value of up to 15.000 %

Euro coins sometimes have an enormous virtu the so called starter-kits the bags in which the first Euro coins had been dumped had an enhancement in value from 100 to 15.000 % in the last 6 years. So if you bought a starter-kit of the Vatican in 2001 for 3.88 € and never opened it till today it would be worth 600 € that a betterment of 15000 %. The set of San Marino on the other hand had an enhancement in value of 5000 %. Also very coveted are Euro coins with min-defects for example when the wrong map is printed on the coin or wrong digits or rims can be seen.

But not every county in the EU got the Euro here is a map of the countries were the Euro was estimated as an official currency. Theses countries are the green ones.

eumap_money2007.gif

The new United States five-dollar bill

21 February 2008 Michael Szumielewski 76 Comments Money

The new US five-dollar bill

Did you know that the US $5 bill has been redesigned and will be issued on March 13, 2008? Well, it turned from green to purple, but I am sure Abraham Lincoln will not be upset ;) The Bureau of Engraving and Printing enhanced security for the new bills, so they are harder to fake and easier to check. I recommend you to visit the official homepage so you know how to differ fake money from real U.S. currency. “Printing fake bills can be a lot more complicated then just getting a few machines and a bunch of printer cartridges like HP toner.”

You can look up the new features in a nice flash animation on portfolio.com. The new features are two new watermarks on both sides of the bill and an embedded security thread, which moved from the left of the portrait and is now located on the right side. The new $5 bill will remain the same size, but the color and images changed a bit. The color goes from a light purple in the center of the bill and blends into gray near the edges. This design update adds complexity to the bill to make counterfeiting more difficult. The Great Seal of the United States, a American symbol of freedom, has been added to the background and Lincoln’s portrait and vignette have also been changed. There are also a few other features like microprintings and of course the serial numbers.

The new money will be introduced on March 13, 2008 but of course you will not have to exchange your old $5 bills for new ones. Nevertheless, you will come across the $5 bills soon, because the “average life” of a $5 bill in circulation is 16 months before it is replaced due to wear, says the Bureau of Engraving and Printing. Approximately 9 percent of all paper currency produced by the U.S. Treasury’s Bureau of Engraving and Printing today are $5 bills. In fact, you can even still pay with U.S. banknotes from 1861, they are still redeemable today at full face value and will continue to be legal currency. The United States has never devalued its currency, so owning $5 bills seems like a quite sure thing to me.

Quotes about money and investing

12 February 2008 Michael Szumielewski 2 Comments Money

In this post you will find various quotations related to money and investing. From time to time we will add new quotes, in the mean time, enjoy yourself with this ones.

“A market is the combined behavior of thousands of people responding to information, misinformation and whim.”
Kenneth Chang

“Emotions are your worst enemy in the stock market.”
Don Hays

“Everyone has the brainpower to follow the stock market. If you made it through fifth-grade math, you can do it.”
Peter Lynch

“90% of the people in the stock market, professionals and amateurs alike, simply haven’t done enough homework.”
William J. O’Neil

“Money talks…but all mine ever says is good-bye.”
Anonymous

“You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right.”
Benjamin Graham

“Individuals who cannot master their emotions are ill-suited to profit from the investment process.”
Benjamin Graham

“Most of the time common stocks are subject to irrational and excessive price fluctuations in both directions as the consequence of the ingrained tendency of most people to speculate or gamble…to give way to hope, fear and greed.”
Benjamin Graham

“I made my money by selling too soon.”
Bernard Baruch

“Don’t try to buy at the bottom and sell at the top. It can’t be done except by liars.”
Bernard Baruch

“Why is there so much month left at the end of the money?”
John Barrymore

“The entire essence of America is the hope to first make money — then make money with money — then make lots of money with lots of money.”
Paul Erdman

“Money, the root of all evil…but the cure for all sadness.”
Mike Gill

“So you think that money is the root of all evil. Have you ever asked what is the root of all money?”
Ayn Rand