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  1. #1
    Affiliate Manager adambha's Avatar
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    US Currency worth...less
    I thought you might get a laugh out of this: http://www.nytimes.com/2006/12/14/bu...l?ref=business

    US currency is so worthless the metal in it has a higher value!

    From the article:
    According to calculations by the Mint, the metal value of pennies, which are made of copper-coated zinc, is now more than one cent. The metal value of 5-cent coins, made from a copper-nickel blend, is up to 7 cents. Adding in the costs of manufacturing means the Mint now spends 1.73 cents for every penny and 8.74 cents for every nickel it makes.
    A nickel worth 7 cents? That's 40% ROI, I see an new market opportunity. Uh, 'black market' that is.

  2. #2
    AM Navigator Geno Prussakov's Avatar
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    Interesting article, Adam. Looks like there's another side to the dollar's decline.

    The new ban also forbids exporting pennies or nickels in any significant quantities. While the Mint is not concerned about touristsí pocket change or numismatic collections, it wants to block wholesale export of coins to countries where recycling them for their metal content could be economically viable.
    WOW!

    Geno

  3. #3
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    So they know, they just don't want us making any money off of this. I figure one day they'll do away with the pricey metal coins altogether - but it is kind of nice for me to reach into my pocket and pull out $13 when I thought I had about $1.65 (I live in Canada where we have $1 and $2 coins)

  4. #4
    OPM Queen Kristin Kinsey's Avatar
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    All this talk of US Currency declination has got me a bit worried about my up coming trip to the Netherlands!

    It's gonna cost more than I orignally thought since the exchange rate keeps getting worse.
    KK

  5. #5
    AM Navigator Geno Prussakov's Avatar
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    Quote Originally Posted by Kristin Collier
    It's gonna cost more than I orignally thought since the exchange rate keeps getting worse.
    It will... This time last year 1 EUR was some 1.18-1.19 USD. Now it exchanges into 1.32-1.33 USD... That is a drop by some 11% in the dollar's value over 1 year.

    It isn't as noticeable if your salary has increased considerably over the year 2006, but it will still be when you buy something big (a car, a boat, an expensive trip, etc). My round-trip trans-Atlantic flights to the US costs me as much as some of my internal European flights.

    Geno

  6. #6
    Analytics Dude Kevin's Avatar
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    Clearly, the dollars decline is due in large part to the influx of erstwhile Russian outsourced program managers. The dates line up all too convincingly ;p

    Thanks a lot Geno. We'll discuss this further in Vegas
    Kevin Webster
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  7. #7
    AM Navigator Geno Prussakov's Avatar
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    Quote Originally Posted by Noth
    Clearly, the dollars decline is due in large part to the influx of erstwhile Russian outsourced program managers. The dates line up all too convincingly ;p


    Good one, Kev...

  8. #8
    Affiliate Manager adambha's Avatar
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    Quote Originally Posted by Geno Prussakov
    This time last year 1 EUR was some 1.18-1.19 USD. Now it exchanges into 1.32-1.33 USD... That is a drop by some 11% in the dollar's value over 1 year.
    Indeed, it was not long ago that the USD was the standard by which all other currencies were measured, but the EUR is giving the USD a run for its money.

    {oh, the dry humor}

  9. #9
    Resident Genius and Staunch Capitalist Leader's Avatar
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    Quote Originally Posted by adambha
    Indeed, it was not long ago that the USD was the standard by which all other currencies were measured, but the EUR is giving the USD a run for its money.

    {oh, the dry humor}
    I thought such groaners fell into the general category of "puns" rather than "dry humor..."

  10. #10
    AM Navigator Geno Prussakov's Avatar
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    NEW YORK, Dec 14 (Reuters) - The dollar gained on Thursday as stronger-than-expected U.S. data strengthened the view that the Federal Reserve may not have to reduce interest rates just yet to stimulate the economy.

    In the latest data to show resilience in the economy, the U.S. government said the number of people claiming initial unemployment benefits last week fell more sharply than economists had expected. That underpinned the dollar as it supported the view of a robust labor market evident in recent payrolls data. [full Reuters story]

  11. #11
    Affiliate Manager adambha's Avatar
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    Rate Exchange Profit/(Loss)
    This all brings up a great question.

    I deal exclusively with Nepal but my partners there shoulder the rate exchange risk (or benefit) since the government there has been shaky (at best) for the past few years.

    Aside from travel-related costs, does anyone deal with foreign markets within their business enough to see an impact from currency rate exchange?

  12. #12
    Analytics Dude Kevin's Avatar
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    Adam: My clients (both live and in the works), have all been looking to grow nationally as opposed to internationally so far, so i don't have input. It's a great question however, and in my niche, I will have to keep an eye on it.
    Kevin Webster
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  13. #13
    AM Navigator Geno Prussakov's Avatar
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    Quote Originally Posted by adambha
    This all brings up a great question.

    ...Aside from travel-related costs, does anyone deal with foreign markets within their business enough to see an impact from currency rate exchange?
    Russian Legacy, Inc gets most of its merchandise (all of it apart from the gun posters which are printed within the USA) from Russia. With the dollar rate slide from 32 Rubles to 26.3 Rubles, you can imagine what had to happen with RL's prices. They've gone up. However, since most US-based RL's competitors also sell the "authentic Russian stuff", their prices have gone up as well... I am glad that this price increase has not affected RL's Q4 sales. They've increased some 2.5-3 times comparing to 2005. Affiliate sales have also increased some 170-180%.

    Geno

  14. #14
    Affiliate Manager adambha's Avatar
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    Quote Originally Posted by Geno Prussakov
    With the dollar rate slide from 32 Rubles to 26.3 Rubles, you can imagine what had to happen with RL's prices.
    That's great that you were still able to see excellent growth rates with increasing prices.

    Something a little more relevant to me are commodities prices, namely silver. I've nervously watched the price of silver more than double over the past year. Thankfully, much like you have experienced Geno, the market as a whole tends to adjust prices accordingly.

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