roger1999 Posted August 14, 2014 Share Posted August 14, 2014 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. Link to comment Share on other sites More sharing options...
Naam Posted August 15, 2014 Share Posted August 15, 2014 tell your friend he will be very disappointed 1 Link to comment Share on other sites More sharing options...
roger1999 Posted August 15, 2014 Author Share Posted August 15, 2014 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? Link to comment Share on other sites More sharing options...
Pib Posted August 15, 2014 Share Posted August 15, 2014 Buy anything cheap; then sell high. Easy. Link to comment Share on other sites More sharing options...
Naam Posted August 15, 2014 Share Posted August 15, 2014 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. Link to comment Share on other sites More sharing options...
roger1999 Posted August 15, 2014 Author Share Posted August 15, 2014 What if he decides to up the ante and buy a townhouse? Good idea or not? Link to comment Share on other sites More sharing options...
topt Posted August 15, 2014 Share Posted August 15, 2014 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.................. Link to comment Share on other sites More sharing options...
rwdrwdrwd Posted August 15, 2014 Share Posted August 15, 2014 (edited) 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. Edited August 15, 2014 by rwdrwdrwd 1 Link to comment Share on other sites More sharing options...
roger1999 Posted August 15, 2014 Author Share Posted August 15, 2014 Excellent. Thanks for that. Link to comment Share on other sites More sharing options...
roger1999 Posted August 15, 2014 Author Share Posted August 15, 2014 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... Link to comment Share on other sites More sharing options...
roger1999 Posted August 15, 2014 Author Share Posted August 15, 2014 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. Link to comment Share on other sites More sharing options...
Naam Posted August 16, 2014 Share Posted August 16, 2014 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 Link to comment Share on other sites More sharing options...
roger1999 Posted August 16, 2014 Author Share Posted August 16, 2014 Naam, "up the ante" is slang for "put in more cash." Link to comment Share on other sites More sharing options...
Naam Posted August 16, 2014 Share Posted August 16, 2014 Naam, "up the ante" is slang for "put in more cash." 12k? Link to comment Share on other sites More sharing options...
Gumballl Posted August 16, 2014 Share Posted August 16, 2014 Tell your friend to buy Argentinian bonds. Link to comment Share on other sites More sharing options...
ThaiPauly Posted August 16, 2014 Share Posted August 16, 2014 Corned Beef.......very expensive over here Link to comment Share on other sites More sharing options...
fletchsmile Posted August 16, 2014 Share Posted August 16, 2014 (edited) 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 Edited August 16, 2014 by fletchsmile 1 Link to comment Share on other sites More sharing options...
Naam Posted August 16, 2014 Share Posted August 16, 2014 Tell your friend to buy Argentinian bonds. they trade flat because of Argentina's recent technical default which seems to become a full default. 1 Link to comment Share on other sites More sharing options...
rwdrwdrwd Posted August 17, 2014 Share Posted August 17, 2014 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 1 Link to comment Share on other sites More sharing options...
roger1999 Posted August 17, 2014 Author Share Posted August 17, 2014 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. Link to comment Share on other sites More sharing options...
roger1999 Posted August 18, 2014 Author Share Posted August 18, 2014 Well, just heard back from him again and it looks like he's pulling my leg. Link to comment Share on other sites More sharing options...
.png.3b3332cc2256ad0edbc2fe9404feeef0.png)
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now