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What's the best way to convert some of my cash to other currencies to diversify away from the dollar? Or should I just buy gold?

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Gold has always been valuable but in times of crisis, gold could actually become worth less, simply because people start needing more basic needs. Already, the value of gold is becoming less but since the value of the Dollar is going down even faster, it just seems as if the gold price is rising.

One way to convert cash to a different currency is by opening a bank account in another country. You would then use that bank to store your money in this other currency but you will have some problems if you want to pay someone local in this foreign currency, since that would become an international payment. Adding funds to those bank accounts would also count as international payments and these transactions tend to cost a bit in transaction costs.

I myself use a simpler trick. I use PayPal for any foreign payments and Paypal can also hold my cash in whatever currency I prefer. Their exchange rates aren't optimal but they're an international bank and thus you won't really have much problems with international transactions. It's also very easy to handle all your different currencies through them, but if it's the best way? That depends on what you consider the "best way". I myself normally deal with Euro's but sometimes need Dollars or Yen for international payments. For me, it's ideal, mostly because I tend to deal with small amounts.

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Very interesting thanks, I hadn't even thought of paypal for this seems simple and that's what I'm looking for. – sefner Oct 9 at 15:12
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Diversification based on currency based ETF's would be another option. The value of the shares of a currency exchange traded product relates directly to the value of the foreign currency held by the particular product. This creates a concentration risk associated with fluctuations in the price of the applicable foreign currency.

Unique risk factors of a foreign currency include national debt levels and trade deficits, domestic and foreign inflation rates, domestic and foreign interest rates, investment and trading activities of institutions and global or regional political, economic or financial events and situations.

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