A buddy is headed to Argentina next week from the US, where the official exchange rate and blue market exchange rates are far apart. He'd like to take US$ 10,000 with him and try to make a few bucks. Any idea how he might do this? He's asked for my advice and I'm clueless on this stuff.

tell your friend he will be very disappointed

Well, he's not expecting miracles. Isn't there something he could buy down there and re-sell in the USA. Leather jackets, maybe? How about gold?

Buy anything cheap; then sell high. Easy.

Well, he's not expecting miracles. Isn't there something he could buy down there and re-sell in the USA. Leather jackets, maybe? How about gold?

prices of commodities whether pork bellies, leather jackets, tango lessons or gold not only reflect but are usually 100% in line or more expensive using the black market rate of a domestic currency.

in Argentina, a country with a huge inflation of presently 40% p.a., buying commodities with domestic currency will even result in a loss.

What if he decides to up the ante and buy a townhouse? Good idea or not?

What if he decides to up the ante and buy a townhouse? Good idea or not?

Your mate doesn't know and he asks you, who admit you do not know (and are presumably in Thailand) and you ask the question on a Thai forum.....................................about Argentina..................

What if he decides to up the ante and buy a townhouse? Good idea or not?

Your mate doesn't know and he asks you, who admit you do not know (and are presumably in Thailand) and you ask the question on a Thai forum.....................................about Argentina..................

Big unused factory buildings in central Buenos Aires districts were going for about 16k GBP in 2001/2. 5 years later easily on the way to 10x that and well in demand for conversion to apartments. Not sure of prices at the moment, but have a feeling are far higher than the level back then - I'd guess that 10k is unlikely to be enough for anything.

Excellent. Thanks for that.

What if he decides to up the ante and buy a townhouse? Good idea or not?

Your mate doesn't know and he asks you, who admit you do not know (and are presumably in Thailand) and you ask the question on a Thai forum.....................................about Argentina..................

Agreed, it is funny. But you never know where a good idea might come from...

rwdrwdrwd, I have just spoken with my buddy and he agrees with you. The first time he and I both bought significant amounts of foreign real estate was when the Thai baht was in turmoil in 1997. Argentina went through the same thing in 2002 or thereabouts and it is happening again. $10,000 is not enough to do much. He needs to decide to up the ante or forget about it. THANK YOU for your comments.

What if he decides to up the ante and buy a townhouse? Good idea or not?

why only one? with the huge amount of USD 10k he can buy most probably a whole block of townhouses, still has enough cash left to buy leather jackets for export and rake in additional hefty profits

Naam, "up the ante" is slang for "put in more cash."

Naam, "up the ante" is slang for "put in more cash."

12k?

Tell your friend to buy Argentinian bonds.

Corned Beef.......very expensive over here

rwdrwdrwd, I have just spoken with my buddy and he agrees with you. The first time he and I both bought significant amounts of foreign real estate was when the Thai baht was in turmoil in 1997. Argentina went through the same thing in 2002 or thereabouts and it is happening again. $10,000 is not enough to do much. He needs to decide to up the ante or forget about it. THANK YOU for your comments.

Real estate isn't really realistic on that sort of money, particularly if you don't have real ties to the country.

After 1997 that provided some good opportunities in THB and THB equities. Unfortunately, I can't say there are parallels there, and we're looking at different crises. Argentinian equities have done very well over the last year. Depending on which Argentina equity index you pick they are up 84% (BURCAP) or 131% (MERVAL) so not exactly bargains there. 28 July they both hit monthly lows around the news and that would have been a good buying opportunity and you could have had 10% or so between then and now. Unfortunately you've missed that one.

So for me, property no. equities no. can't say I find the bonds attractive with what's going on at the moment, and wouldn't like to punt on their cash/currency either

Better to keep his powder dry, enjoy the trip and invest in memories

Cheers

Fletch

Tell your friend to buy Argentinian bonds.

they trade flat because of Argentina's recent technical default which seems to become a full default.

rwdrwdrwd, I have just spoken with my buddy and he agrees with you. The first time he and I both bought significant amounts of foreign real estate was when the Thai baht was in turmoil in 1997. Argentina went through the same thing in 2002 or thereabouts and it is happening again. $10,000 is not enough to do much. He needs to decide to up the ante or forget about it. THANK YOU for your comments.

Bear in mind that the turmoil in 2001 in Argentina and this year are quite different - this time the default isn't a lack of funds, it's due to a legal conundrum. http://citywire.co.uk/money/argentinas-bond-default-wont-repeat-2001-crisis/a764921 is a good read

But yep, 10k isn't enough, and even if he could obtain more he should be careful - might not see anything close to a repeat of 2001 - 2006

Against my best advice he purchased a townhouse after being in the country less than 24 hours. I suspect he will make out OK on the deal. Not great. Maybe OK.

Well, just heard back from him again and it looks like he's pulling my leg.