Last year I wrote a post about how to invest in foreign currencies and how I personally bought a lot of U.S. dollars and Chinese Yuan. Luckily those decisions are already paying off 🙂 $USD gained against $CAD in 2013, and the Yuan is now trading higher than when I bought it. Don’t worry if you didn’t pull the trigger last year because today I will tell you about another investment opportunity in the currency markets. It is the Zimbabwean dollar 😀
A long time reader recently asked me about it, so I thought I’d share my views. Initially the Zimbabwean dollar was worth more than the U.S. dollar at 1 ZWD = 1.47 USD in 1980. But the $ZWD quickly began to lose its value. Inflation rose to 32% annually by 1998. Hyperinflation was out of control by 2008 at 11,200,000% annually, Ay Caramba! 😯 Finally in 2009 the Zimbabwean dollar was suspended indefinitely. Today, the country officially uses $USD, €EUR, £GBP, and the South African rand as acceptable currencies.
I bought some $100 trillion Zimbabwe banknotes on eBay in 2012 for only $4 CDN each! But since Zimbabwe banknotes are no longer being printed, finding them is becoming difficult as the currency becomes more rare which ironically is sending its value back up due to shortage. I bought more in June 2013 at approximately $5 each, including shipping. A few months later in October Anne from Unique Gifter mentioned these $100 trillion notes were selling for $6 each. Finally I checked once more earlier this year, 2014, and the cheapest ones I found were selling at $9 each. Goodness gracious. Look at that trend! I’m making a higher return (percentage wise) from these Zimbabwean dollars than from the stock market! I predict these same notes will be worth $25 each in a couple more years 😀 Financial independence, here I come! Below is a picture of some $ZWD banknotes I purchased last year.
The design on the obverse represents the naturally caused balancing rocks found in Zimbabwe. On the reverse are pictures of Victoria Falls, one of the seven wonders of the natural world, and a water buffalo because as you know – water buffalo are awesome 😀 I think over time the Zimbabwean dollar will continue to gain desirability among investors and collectors so I believe now is not too late to get in.
With other investments like buying a stock, you risk losing everything. But the unique benefit of investing in the Zimbabwe currency is you can convert any losses into savings! If the currency loses value, you can just give your banknotes to your friends or relatives as a present 😀 You can tell them “This is how much our relationship means to me 🙂” Don’t forget to put on your smiley face at the end like that for emphasis. When they see the exorbitant value on the banknote and realize you have just made them a trillionaire they will be overwhelmed with joy, discover a new sense of self worth and confidence, and make you their favorite person in the whole wide world, haha 😆 Not only do you save money on presents but giving the gift of happiness is not something you can put a price on! Just don’t mention to them the part where $1 ZWD = $0.00000000000001 CAD 😉
Below is a list of some other moneys I’ve bought around the same time as I bought the Zimbabwean dollars. Alternative forms of investing like foreign money and historic currencies out of circulation are great ways to diversify one’s portfolio! It’s also an enjoyable way to learn about global culture and history 😀