Korean Job Discussion Forums

[whatever]

As far as economics are concerned, I'm clueless. What I do know and can internalize is that our local currency's value is tanking...

Say I did this: Go to the bank, take out the majority of my savings, change it for yen in cash, take that mofo back to the pad and throw it in a shoebox.

Pros and cons?

I'm neither a short-termer or a long-termer, meaning I'm ambivalent about remaining in Korea. Good job and situation, relationship that I care about, but was thinking of a change up until recently. Been here three years.

I'm just shaking my head at all of this crap like everyone else. I really don't mean to start a thread about only my situation, but what about the yen? I don't suppose I could have Japanese yen in my Korean bank account. Coincidentally, I still have an active Japanese bank account from the time I lived there, with a small balance for emergencies, as I travel there still quite frequently...

To yen or not to yen? That seems like a more stable plan...but...

[victorology]

I think this is the wrong mentality to have. From reading these forums, it seems everyone has a buy high, sell low mentality. Actually, it's just human nature. Something goes up in value a great deal and you want to get a piece of the action. Unfortunately, this is why the "little guy" usually loses.

Basically, you want to sell the won when it's trading at multiple year lows and buy the yen when it's selling at multiple year highs. I wonder what Warren Buffett would think about that.

Based on what you've said, I would just put that money into a CMA or MMF. I'm getting about 5.7% and I can take my money out at any time. If you had a longer term outlook, I would invest differently.

[seosan08]

I've been buying gold for a couple of years. I got paid in September and made my monthly visit to the local mom and pop jeweler who sell the 37.5 gram "geum don" (gold money) square of gold. I bought on a Friday, paid W1,150,000. Went back 3 days later and the guy wanted W1.25 million for the same thing. It's funny, guem don that I paid less than W800k are now worth nearly W1.3 million (or thereabouts). The thing is, at these exchange rates, I can't afford to buy gold anymore.

Short term-medium term, the Yen is a good bet to hold it's value and not sink because the Yen Carry Trade is unwinding and people have to buy Yen to pay back losses on margin calls, and so forth. Long term the only things I would trust would be Gold, silver and the Swiss Franc. The CHF probably won't make impressive gains, but it WILL hold it's value, unlike most fiat currency. The Franc is at least partially backed by gold. In times of recession, preserving what you have rather than making a killing is more important in my book.

I plan on staying in Korea, because I can't see spending the better part of $10k to move back to a bad economy. But because of conditions, I'll have to change the way I save. And for the time being, the way I see it, I'm better off with Yen. Until the crash comes, and the dust settles, I can't really say I'd trust too many places to hold my money. I thought about getting a brokered trading account, but with all the leveraged debt in Korea, I have serious reservations. The problem is with toxic debt, no one knows where the bad debt ends and the good debt starts. Which in a nutshell, is why banks aren't lending to each other. They're staying in cash, and at this point, I think it's a damn good idea.

[whatever]

Smart analysis that I wouldn't otherwise be knowledgeable of...thanks!