Dollar to Euro Conversion

[Daniel Cole]

Just curious how the current exchange rate has affected other smaller hobbists, especially here in the USA. It certainly has put a damper on new acquisitions for me. The 25% extra for dollar to euro makes big purchases out of reach.

[Richard Gordon]

Personally it hasn't affected me. You would think there should be advantage for me with strong GBP but I hardly ever buy from the US as there's the customs charges, etc to add in so the advantage gets wiped out.

Rich

[Chris Boonzaier]

Well... let the dollar loose another 75% and I will maybe consider buying from the Rittmeister ;-)

[Paul C]

It is more like 42%. Yes.. There were many things I would have bought on a recent trip to Germany if the dollar was better.

[Noor]

Last months I bought some items from States and I must say... I like currency situation at the moment

Noor

[Guest Rick Research]

We're colonials again, being exploitified by the Evile Eurine-masters. Haven't gotten anything from the Ancestral Homelands for several years now. Even reference books that I "need" are literally insane at this exchange rate.

Back in the early 1980s, the DM was 29 cents U.S. and they laughed at silly Murcans paying "gut money" for that old WW1 junk.

[Christophe]

Last months I bought some items from States and I must say... I like currency situation at the moment

Noor

I agree. In a general manner, nothing wrong with this... at least for me...

Ch.

[VtwinVince]

Our dollar has risen about 45% against the USD in the last couple of years, so I'm buying alot more from the States than usual. In fact, our currency is now higher for the first time since the 1970's. Might be time for the US government to begin exercising some fiscal responsibility, before the whole house of cards comes down.

[Schießplatzmeister]

Hello folks:

OK, now for my "2 cents" worth. Even on this side of the pond, the good news is that your collection could be worth a bit more. Also, selling items in Europe will bring a better return.

All "values" regarding these items are relative. It really doesn't matter what you pay (within the market "norm") as long as you enjoy what you collect. Whatever you pay for an item you should be able to get back at the time of sale (if you use good judgement regarding purchases).

I have not seen a depreciation in "value" for these types of items since I have started collecting.

The bad news is that as items become "worth" more, the criminal forgers will be out making copies of even what we considered "common" items not too long ago.

Best regards,

"SPM"

ps: I don't think that I will ever be able to afford items from the "der Rittmeister" (which doesn't matter as there isn't much that is desirable there for me anyway).

[Yankee]

Our dollar has risen about 45% against the USD in the last couple of years, so I'm buying alot more from the States than usual. In fact, our currency is now higher for the first time since the 1970's. Might be time for the US government to begin exercising some fiscal responsibility, before the whole house of cards comes down.

If the WAR in Iraq continues 4 more years very good possibility to see the Euro at 2 dollars. Short the dollar you just might make a fortune........... & then you can buy lots of medals at any price.

[Stogieman]

For me, the combination of weak dollar and rapidly rising prices has pretty much locked me out of buying in Europe for the time being. Why I remember when the Euro was lower than the dollar. After the conversion, Many "usual" German Dealers had an instant increase in the "price/value" of the merchandise....

A St. Henry Knights Cross that was 1800-DM (about $900) became 1800-EU ($1350) literally overnight....

While GMIC wasn't incorporated yet, a search through old threads at WAF, etc. will show you some pretty astounding examples being discussed of the predatory price changes that occurred.

Even today, I really had to think twice about withdrawing Euros from an account to convert to dollars.

[Les]

It was evident at the Max Show a week ago, when some (un-named) and very ill-behaved and lacking in social graces Europeans ignored "do not handle without permission" signs and acted like sharks at a feeding frenzy.

I've been holding off on buying -and- selling high ticket items both in the US and elsewhere in the world at this time, for personal reasons. When I do sell certain items, I prefer the they go to "good homes" and usually not to dealers for re-sale. For entirely personal reasons, there are some people I won't buy from, or sell to.

Exchange rates aren't written in stone, and currency rates go up and down. Not so many years ago (remember the early 1990's?) the Russians were selling almost everything with or without legal ownership rights, trying to get foreign hard currencies. Now...with the oil development projects in the Russian Federation, "Russians" are buying all sorts of things and helping to drive prices up.

For those of us who've seen currency rates go up and down, the current dollar situation is a good one to set tight on and -not- sell. Sooner or later, the exchange rate will reverse itself, and items will move in the direction of those with the money and willing to pay the prices.

Enjoy the situation while you can. The worm never rests, and it is always turning.

Les

[Rod]

I did not attend the MAX show in Pittsburgh, but I understand the Russians were buying all they could of the less mint items.

I am curious.... was this rush to buy items prompted by simply investment potential?

It all seems very strange to me. Investment would only be if they anticipated a firm future buyer.

It seems to me there is more to this story.

Would someone please speculate as to the reason for this Russian interest.

Rod

Edited October 18, 2007 by Rod

[paddywhack]

i have to say the dollar has been very very good to my collection!i can see the dollar falling still shorter in the future!

[Guest Darrell]

Speaking of the "Dollar" here is what's happened to the Canuck Dollar in the last 90 days. Unfortunately, it hasn;t "gained" over the Euro, but then again, hasn't taken a hit like the US Dollar.

From a Economy Website:

The Canadian Dollar hasn't just appreciated against the U.S. Dollar. Over the last 90 days, the Canadian Dollar has appreciated by 7.9% against the U.S. Dollar, but has also appreciated against the Japanese Yen (8.4%) and the British Pound (4.3%) and has stayed steady with respect to the Euro (0.0%). The Canadian Dollar has also appreciated against the Swiss Franc over the last three months (4.4%), but has depricated by the 30 day and 1 year measures. The only currency on the list that the Canadian Dollar has depreciated against in the last 90 days is the Mexican Peso (-0.7%), but the Dollar has greatly appreciated relative to the Peso over the last year (18.6%). The gain in the strength of the Canadian Dollar does not seem to be limited just to the Canadian/American exchange rate.

[Luftmensch]

For those of us who've seen currency rates go up and down, the current dollar situation is a good one to set tight on and -not- sell. Sooner or later, the exchange rate will reverse itself, and items will move in the direction of those with the money and willing to pay the prices.

Enjoy the situation while you can. The worm never rests, and it is always turning.

Les

[Luftmensch]

I did not attend the MAX show in Pittsburgh, but I understand the Russians were buying all they could of the less mint items.

I am curious.... was this rush to buy items prompted by simply investment potential?

It all seems very strange to me. Investment would only be if they anticipated a firm future buyer.

It seems to me there is more to this story.

Would someone please speculate as to the reason for this Russian interest.

Rod

As worms turn, there is no better example than friends of Putin finding themselves under lock and key the next moment and their assets seized. They are probably getting rid of cash in areas where there is a well defined and growing market, and salting those assets away...

[redcross]

I can't say I like the weak dollar,

not only do things cost me more,

but those euro folks are not so

happy to see my dollars as they

once were - and finding euros

to send them is rather difficult

[Les]

You're dreaming! The Euro will go to 2 US$ before it goes to par...

Rgds

Luftie,

You're quite likely going to be right about what's in store for the dollar....but that's beyond the topic of this thread. The Euro might be doing well, but sooner or later, everything changes although it might take a decade, two, or even more.

The bad thing about lop-sided currency exchange rates, is that strong currencies have been known to impact trade balances in a negative way.

A few years ago, when the Euro appeared, Far too many German dealers started jacking up their prices while mumbling various things about economic factors and the exchange rate making price increases necessary.

I suspect more than a few Americans will realize that Europeans buying here, will result in prices being jacked up on this end, or simply, Americans will sell items directly in Europe either themselves or through auctions, directly for Euros. Whether the Euros are exchanged for another currency, or banked into an account in Europe or elsewhere.... is another matter.

Les

[paddywhack]

well the dollar rate aloud me to get my first large intact impy medal bar(which il be posting when she arrives!) so personaly i think its great!!!!but i reckon it will go down but for the momnet im getting most stuff from the states!

[Brian Wolfe]

This is an interesting post and I have gained a lot of knowledge about the way the dollar and the market play out. Interesting, but it really is of little concern to me collecting wise. Not to belittle anything anyone has said but I collect what I can and when I can. The Canadian dollar has been up, then down now up again. I don't collect for investiment, I collect for my own enjoyment. If it costs more to enjoy myself so be it, I just collect a little less and not so often. Actually since the US dollar has been lower it seems I've added less from the US and more from the UK, go figure.

You could say that a fool and his money are soon parted but what the heck 50 years from now will it really matter?

Cheers

Brian

[Ed_Haynes]

Wise words, Brian. Only if such things matter for short-term investment or within our own short lifetimes do they matter at all.

Acquiring anything from outside the US is now difficult. Researching what we have is now rather more expensive. Enjoying what we have already as our guests is free.

[Luftmensch]

Luftie,

You're quite likely going to be right about what's in store for the dollar....but that's beyond the topic of this thread. The Euro might be doing well, but sooner or later, everything changes although it might take a decade, two, or even more.

The bad thing about lop-sided currency exchange rates, is that strong currencies have been known to impact trade balances in a negative way.

A few years ago, when the Euro appeared, Far too many German dealers started jacking up their prices while mumbling various things about economic factors and the exchange rate making price increases necessary.

I suspect more than a few Americans will realize that Europeans buying here, will result in prices being jacked up on this end, or simply, Americans will sell items directly in Europe either themselves or through auctions, directly for Euros. Whether the Euros are exchanged for another currency, or banked into an account in Europe or elsewhere.... is another matter.

Les

Right you are! I recommend HSBC in Canada who offer Euro and Sterling accounts to Americans. You can open them on the phone.

The advantage is, to an active collector, banking Euros to spend Euros on new items, and avoiding multiple conversions--and a very sick currency altogether. Though it may see a pop around the election...

Rgds

Edited November 4, 2007 by Luftmensch

[redcross]

while I would love to have a euro account

and be able to wire money at low cost

[the way it seems to work in europe]

as far as I can tell

banking laws in the USA

seem to prevent that sort of thing

although perhaps someone can explain

how it can be done, legally

[Luftmensch]

while I would love to have a euro account

and be able to wire money at low cost

[the way it seems to work in europe]

as far as I can tell

banking laws in the USA

seem to prevent that sort of thing

although perhaps someone can explain

how it can be done, legally

Contact a branch of HSBC Bank...by phone if there isn't one close to you. They will refer you to an IBC (International Banking Center) of HSBC. An IBC will get all forms to you to open a Euro deposit a/c and tell you how to get them filled out and notarized. They are currently inundated with American applications, so allow for 2-3 months all told. Your Euro a/c will be domiciled at a Canadian branch of HSBC. Once the a/c is set up you deal with them by phone or thru internet banking. A form notifies the IRS of its existence so I wouldn't try to shelter income there. Some tax is withheld on interest by Revenue Canada but there is a tax treaty so I believe you can claim most of it back to avoid double taxation.

Your Canadian HSBC branch will receive Euros wired from Europe, or Euro checks or I suppose cash sent by registered mail. Having set you up they would like you to leave some funds on deposit (not a bad idea as the dollar slides) but will convert and wire US funds to your US a/c as you require them. They will also mail a US $ check to you to avoid further fees. For funds on deposit they offer Euro CDs at decent rates. If you want to repatriate US dollars and don't like HSBCs conversion rate (it depends on how much you have with them!) you can use xe.com, which a lot of American dealers use. They open a/cs in Europe and occasionally top them up before buying trips by wiring US dollars and converting funds thru xe.com. XE are a Canadian company and reputable.

You can do all the above with six other currencies, none of which is possible with an American bank, unless you are some high net worth individual. Until I set this up, Citibank, for example, wanted to charge me US$1,000 conversion and fees (above the xe.com or Cdn HSBC rate) on a 7,000 pound check.

The trick is to get someone to physically deposit Euros to avoid being burned on conversion....and then someone else who will convert at something like a settlement rate (which HSBC can match if it wants the business).

I don't think it has much to do with US banking law. US banks just don't want to be in the retail currency market. After you've been nearly burned once you oblige them and look elsewhere...

Rgds

Edited November 6, 2007 by Luftmensch