If the Dollar Exchange Rate Goes Over 1,400 Won, What's the Best Money Move?
The exchange rate is starting to climb to a scary level now. Even though I want to invest in dollars, the rate is already high, so buying right now feels a bit off.
Here are the options I'm considering:
1. FX timing plays — Wait and watch for now, buy dollars if it drops to 1,320–1,350, and if it goes higher, just watch it rise.
2. Gold/silver — Safe-haven assets, so if I want to stay safe from both exchange rates and inflation, this is the way.
3. Dollar savings deposits — Low interest, but just park the money there while expecting exchange rate gains.
4. US stock FX-hedged products — Focus only on the stocks, removing currency fluctuation risk.
I'm trying to diversify, but at a time like this, what kind of ratio should I keep between gold and dollars? Curious what you guys think.
9 answers
Agreed, if the exchange rate is like this, I should probably do something, lol.
I think having 30% gold and 20% dollars as a baseline is the way to go. The rest goes into US stocks and savings deposits. Even if buying now at an exchange rate of 1400 seems a bit much, it's not a strange price over the long term.
Well, that's a bit optimistic. What if it goes up more while you're waiting for it to drop to 1320? Exchange rates can't be predicted.
I made 5% last year with forex trading, but the answer is just to keep buying little by little.
Option 3, dollar deposit is fine. Though if you give up the interest, the money just sits there, which is a bit of a shame.
Isn't the price of gold already too high to buy right now? Plus, if you buy physical gold, you'd have to store it.
Oh, I didn't know that. I only considered #4, but I should look into #2 as well.
It's important to set your allocation and stick to it. Personally, I go with 10% gold, 30% dollars, and 60% hedge stocks. But that's not the definitive answer—adjust it to fit your own style.
Just buy dollars now. If it hits 1350, that's average lol.