I am in a bit of a predicament. I have a variety of online investments. Given they are online, and I deal with people from all around the world I have always dealt in USD.
I have no interest in disclosing the nature of my investments but it works on the following premise:
I buy x at $500 and sell it for $750 a month later.
Certain types of this particular product have always had a base rate, I.E product x is worth AT LEAST $500 independant of the quality of the product. If it is of better quality, it could fetch as much as $1,000.
I sold some of my investments, and had some free cash in my paypal account. I thus found an opportunity to buy product x at $500, and jumped on it.
My problem is as follows. I have $2,000 in my online accounts. I COULD buy 4 of product x at its apparent minimum value.
The other option however is as follows: I could withdraw the dollars. If i did this, I would get significantly more GBP than I would have 5 months ago.
The $500 minimum is an exagerated minimum because in terms of GBP it is significantly more than it was. This has no effect for US investors as they use dollars both on and offline.
My question is as to how I cope with exchange rates. I do not need any GBP, and I love investing in this particular product. It has made me a lot of money. Do I:
a) Adjust my 'minimum' to a lesser amount to compensate for the exchange rate change. The problem here is that US investors are not/dont need to = less opportunities for me.
b) withdraw my dollars because I will get the most for it now.. and invest it elsewhere.
c)Keep it up but only invest in real bargains with a significant, and obvious rate of return.
USD->GBP wise I get more GBP at the moment. If I do carry on investing, and then in 5 months the exchange rates goes back to where it was. I could have invested $500 (say £400), sell for £800, and only get a £400 return still..
I hope my jumbled mess makes some sense.
Any help/advice would be great.
If its still making money, and will do for the forseeable future, then keep trading. If its going to run out of revenue streams in the next few months you have decide whether the extra money you make will be worth the effort when back in £, considering sterling might rally and your USD would be worth less. As for what else to do with it? Stocks and shares at the moment look good. Only if you can afford to lose it all, but there is HUGE profit making opportunities for the right companies in the long run.
Article in the Sunday Times last weekend that anticipates that the dollar is going to strengthen against the pound in the next few months....on that basis and if it turns out to be true, you might want to hold your dollars a bit longer...