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Rich Dad Forum
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Location, Location, Location
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Middle East and Africa
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South Africa - Rand ups and downs
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Rank: Copper
Joined: 11/27/2008
Posts: 4
Location: South Africa
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Hi there
I'm from South Africa and have just recently began my journey to escape from the rat race. I fully agree with what Robert says about financial education and how important it is. For now this is my main goal, to learn as much as possible and to gain experience.
This morning on the news I heard talk of the Rand being stronger and weaker and I was wondering: How does a stronger or weaker Rand impact me as a shareholder? What are the implications and effects? Most of my investments are in the mining industry, as I am a metallurgist and more in the know in these types of industries. The nature of these companies are more in dollars than in Rands. What happens to share value as the Rand fluctuates?
I would appreciate any help and advice on this matter.
Regards
Stefan
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Rank: Gold
Joined: 4/19/2010
Posts: 141
Location: New Zealand
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If the Rand goes higher, it's better for importers and worse for exporters. If it goes lower, it's better exporter and worse for importers.
If it's a mining company, they will be worse off because they would export most of their goods.
If it's a retailier that imports good (example would be a surf clothing store which imports from China) then they will be better off if the Rand goes higher.
Read up on forex to get a better understanding.
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