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 😀
I think you need to go on that silly show that Brett Wilson had! That is a mighty fine return on them, though. I might have to pick them up soon, otherwise they might get kind of pricey.
Man I love supply and demand.
Being on a realty TV show could be fun and it would be great to meet a retired dragon 🙂
I don’t get why some countries have such high denomination in their currency. But that’s a cool bank note, $100 trillion!! You always have a unique investment approach. They are starting to pay off 🙂
There are always opportunities out there if we look for them :0) For my next investment idea I’m thinking about the 3D printing industry :0)
It was surreal to be in Zimbabwe in 2008 when hyperinflation was really heating up!
Their reserve bank had to redenominate their dollar that year. Must have been crazy times.
Anybody ever refer to you as eccentric? Just wondering – Cheers. 😉
Haha, thanks but no. Although that’s a pretty accurate way to describe some of my thinking around money. But I don’t really discuss financial matters outside of this blog.
Lol, so you collect coins and bank notes too?
I remember seeing and taking a picture in a museum in London that you have with the Zimbabwe bills. I thought it was pretty interesting at the time!
Yes, it’s a fun pastime for me collecting these things. And they always hold their value over time so it’s another way to diversify the asset column 🙂
Had Dr Evil know about Zimbabwe trillions he would’ve invaded there. In Vietnam I was a millionaire with a 100 bucks (1.4 million to be exact)
I was really surprised to find out who played Dr. Evil. They did a good job with the make up. I just ordered a bunch of 20 million dollar Zimbabwe bank notes. Done my Christmas shopping for this year heh.
Even Dr. Evil would be proud! Next time I travel, I’m going to exchange my US quarters for some Million Zimbabwean dollars!
Yes, and wait for your money to appreciate. The U.S. dollar supply will go up over time due to all the printing by the Fed, and the Zimbabwean dollar supply will shrink.
On 30 Jan 2014 China adopt Zimbabwean Dollar as Official Reserved Currency and Official Used Money as RMB the rate was one ZWD exchange to 4.9 RMB other than U$D
To become even more rare… Nice investment my friend.
[…] world. It’s up to us investors to find them. ? A couple of years ago I blogged about my investment in Zimbabwean dollars. I purchased several uncirculated $100 trillion Zimbabwean banknotes on the internet and […]
Someone gave me a Billion in Zimbabwean money I guess it worth nothing