Your Questions About Investing In Foreign Coins

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George asks…

What is a legit foreign exchange business I can invest into, or get into?

I heard there is money to be made in the Foreign Exchange business field, is there anyone out there that can refer me to some legit business sites? Or have information to share?

Justin answers:

Except for a few states, such as West Virginia, there is no regulation of the FOREX spot market in United States. The reason is that money is a commodity. You could go to a coin dealer and buy 1 Euro for $10, $0.80, or $1.33 or any price you could agree upon. You could also do this with a friend or anyone else. Since the FOREX sites are captive sites, you are actually only trading with the FOREX site as a dealer of money. They can use the real spot rates, but if they are losing money on a position, they can simply substitute their own prices. There is no law that says they cannot because they cannot compel you to trade with them. Of course, if you are on margin with them, that could mean they could force a margin call and force you to liquidate at adverse prices. You need to physically go to the United Kingdom or be present in the handful of domestic locations that regulate the practice and engage in your operations within the physical presence of that jurisdiction. Otherwise, while they might be “legit,” in the legal sense, they do not need to act in a manner which an independent observer would consider fair. What is money worth, or better what is foreign money worth? The answer is what a willing buyer will bear. If the only willing buyer is the FOREX firm, then you are in a world of hurt.

Only those with very very very large portfolios can trade with money center institutions. It is important to understand that money trades occur where $1 million is the equivalent of to the average person of a penny.

A better bet is to trade foreign short term debt on a regular brokerage firm. Not only do you get the foreign exposure, but you get a little interest on the money.

Mark asks…

How much money is lost in change?

After I found $25.31 in change around the house, I am wondering about something. How much money in the USA is lost as coins under sofas, in drawers, etc.? Coins or bills saved as collection or as foreign currency don’t count for this question. Also, if you did bother to search for money around the house, how much money did you find?

Justin answers:

You have an excellent question.

Although the actual word could be ‘invested’ instead of ‘lost’. The reason is that the money is still there and retrievable.

The amount has to be almost unfathomable.

I now find myself placing the change from my pockets into a Number 10 can each day. Once a month (or so) I deposit the money into an account. This year I have put over one hundred dollars aside.

Chris asks…

Why don’t people see the corruption behind the Federal Reserve Bank?

It forces the government to borrow money from the FED at an interest, meaning our taxes will always go up. And when the government can’t pay that money back, it borrows even more money. That seems to be never ending debt. And from looking at the ’08 recession, we can see that the monetary policies of the FED were completely useless. So why does it still exist?

Justin answers:

Article 1 Section 8 of the US Constitution states that Congress reserves the power to value and coin money, not a private bank.

The federal reserve is UN-Constitutional and a fascist organization. An private organization we have no control over and has absolutely no transparency controlling our entire currency? There is no telling how many billions are given away that we don’t even know about, hell even Ben Bernanke didn’t even know where billions of the US dollars went when he invested them into foreign banks. He has no idea where the money is!

Is this the type of organization Americans want coining our money?

Joseph asks…

Best coins to invest in on a cheap budget?

Looking to buy a coin that i can for sure make money on in the future. Im on a budget of about 200$. Any ideas???

Justin answers:

There are no “for sures” when it comes to investments, but old coins are generally a pretty safe bet as long as you take care of them (make sure they don’t rust/corrode, etc.)

On a $200 budget, I’d say go for some nice silver coins. U.S. Dimes, quarters, half dollars and dollars from 1964 and before are 90% silver, and they tend to be pretty cheap depending on the type. Be sure to check the value of silver before buying. Coinflation.com is a great resource for this.

You can also get into a bit of foreign coin collecting. German pre-WWI silver marks are really nice, and you can find them for low premiums. Same with old Mexican pesos. If you don’t care about precious metals, there are also plenty of cheap, old copper coins you can buy from the late 19th/early 20th century. Just make sure you do your due diligence first so you don’t get ripped off.

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