CurrencyShares Canadian Dollar Trust (FXC), CurrencyShares Chinese Renminbi Trust (FXCH) – Forget The Greenback: Invest In These Currencies Instead

Norwegian Krone

The world’s seventh-largest oil exporter, Norway’s krone is known as a “petrol currency.” It is backed by a government with zero debt, a budget surplus worth 11% of GDP, and a wealth fund worth $720 billion, or about $144,000 per man, woman and child.

Norway’s central bank, which issues the krone, also boasts one of the highest capital ratios of any central bank in the world at 23.3%. Best of all, it isn’t tied to any other currency, making it as low a risk as currency investing gets.

“The krone is not simply an alternative store of wealth, like gold, for example. It offers strong fundamentals, both structural and cyclical,”HSBC currency strategist David Bloom says. “Gold is a quasi-currency; (the krone) is the real thing. It does not simply reflect flows and sentiment. It is a currency that will reflect its economic fundamentals. These remain strong.”

Because no ETFs exist on the market to buy the krone — yet — consider Everbank.com. It offers a foreign currency account that functions like a money market and allows the transfer of money between major currencies.

Risks to consider: While the value of the U.S. dollar won’t likely impact the krone, the loonie and yuan are connected at the hip. You may see short-term moves if the Fed acts.

Actions to Take –> Currencies move very slowly, so the best way to buy them is to make regular diversified investments over time.

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– Karen Canella

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