Chile Peso 2017, starts at 665.29

Chile Investment, how to invest in Chile, what to watch out for when investing, economic issues, currency exchange in Chile, and more.
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tiagoabner
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Re: Chile Peso 2017, starts at 665.29

Post by tiagoabner » Tue Aug 29, 2017 9:44 am

If things continue on this rhythm, 600- is really possible during this year. Ewwww.

Rhodolite
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Re: Chile Peso 2017, starts at 665.29

Post by Rhodolite » Tue Aug 29, 2017 2:59 pm

I miss seeing the U.S. exchange rate at the top of the allchile.net page each day...

Have a GOOD trip, Admin!

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admin
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Re: Chile Peso 2017, starts at 665.29

Post by admin » Tue Aug 29, 2017 4:40 pm

Rhodolite wrote:I miss seeing the U.S. exchange rate at the top of the allchile.net page each day...

Have a GOOD trip, Admin!
Yea me and the exchange rate at the top of the page will be coming back in october.

Decided to make most of chile shutting down for september this year, and multi-task in europe for september. 15 year aniversery for me and the wife. Got some clients and friends to hook up with.

We had been talking about trip back to europe, since we were students in europe. Now or never.

On the plane.

Chaow jefe!!!!
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HybridAmbassador
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Re: Chile Peso 2017, starts at 665.29

Post by HybridAmbassador » Tue Aug 29, 2017 5:17 pm

admin wrote:If you are planning on investing something in chile, the next 6 to 12 months is the time to do it.

Without fail foreigners seem to like to come running in to chile with their wallets on fire to buy something after the peso is strong, and the economy is already overheating, and the prices of everything have jumped to the moon.

By late 2018, perhaps much sooner, that peso is going to break below 600 and stay there for a very long time.

---- copper price recovering

---- new president

---- dollar weaking

----- low intrest rates

----- lots and lots of both foreign and domestic investment money has been sitting on the sidelines for
Way too long, waiting for this nightmare of an administration to end.

--- recovery in the neighboring countries tends trickle through to chile.
I would add to the portfolio, the Lithium mineral. The whole world is "Electrifying" tongue in cheek ha,ha,,
Volvo cars, will seize all its internal combustion engines cars but not the commercial trucks. VW has annpounced
that by 21 ~ 25 they will be all switching to electrics passenger vehicles. and the rest of majour auto manufacturers
as well..The future will be all "Electrifying" !! Just be careful of getting electrocuted...
HybridAmbassador. Toyota Hybrid system for helping climate change.

Jamers41
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Re: Chile Peso 2017, starts at 665.29

Post by Jamers41 » Tue Aug 29, 2017 5:25 pm

I have to admit that I'm a bit surprised at the number of forumites grumbling about the new exchange rate, I guess I erroneously thought that more people here earned income in pesos.

mem
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Re: Chile Peso 2017, starts at 665.29

Post by mem » Tue Aug 29, 2017 5:47 pm

Well if you think about it...people that make money in CLP are spending money in CLP and live here permanently in general and will be agnostic to the exchange rate just as any chilean who stays in the country most of their lives. The only time the plunging USD/CLP exchange rate helps these people is when they are going on vacation outside the country, like Admin, but that is an occasional type short lived thing with limited benefits

Whereas those making money outside the country and living here permanently while pulling it in constantly into CLP are constantly exposed to plunging USD/CLP

So basically, we should expect to only be hearing complaints when USD/CLP is plunging, except for the occasional person going on vacation who will be happy for a few weeks until they return to Chile and then go back into agnostic/not caring mode in their CLP only making/spending ecosystem

Jamers41
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Re: Chile Peso 2017, starts at 665.29

Post by Jamers41 » Tue Aug 29, 2017 6:10 pm

That's probably about right........I was already aware of that, just like I said I thought more of our friends here had income in CLP and so wouldn't mind the diving dollar. In my case, I make my salary in CLP but I have a debt in dollars so I was grumbling back in 2014/2015 but really starting to sing a different tune now.........hopefully the trend stays around for awhile.

at46
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Re: Chile Peso 2017, starts at 665.29

Post by at46 » Tue Aug 29, 2017 6:53 pm

at46 wrote:
at46 wrote: Regular car uses 2-4 kg of copper, an electrical car uses 18-25. Copper consumption per head is several times higher in industrial economies vs. China. World population is projected to grow by something like 20% by 2035. Have there been any major copper discoveries recently anywhere in the world? If anything, it's getting harder to extract I think. So I don't see anything wrong with copper fundamentally mid- and long-term. But election related volatility and post-election uncertainty will certainly boost the hair dye market for the graying manes.
gregf wrote:But car sale are decreasing are they not?
Like, vs. truck sales? Yeah, cheap gas does that to cars :) Seriously, though, global sales are up 5 million on last year, at 76.74 million, and are forecast to reach 100 million per year by 2020, with 7% of that being electric (https://www.statista.com/statistics/200 ... ince-1990/

BTW, I was totally wrong on the amount of copper used in cars. It's actually a lot more: about 23 kg per regular car and 69 kg per electric. For electric trolleys and buses it's just over one ton per piece. That's gorgeous music to someone invested in Chile :) http://www.coppermatters.org/copper-pow ... tric-cars/
gregf wrote:The dollar really has me hesitant about everything though. That and the high real estate prices. I'm paranoid of buying and moving into a house and then in 2 years losing my ass on it - either through prices falling or the Dollar tanking.
We're at historical highs for USD/CLP. http://www.xe.com/currencycharts/?from= ... P&view=10Y My bet is that CLP is going to strengthen against USD over a year or two, global cataclisms notwithstanding. So maybe look at small liquid apartments instead of a less liquid house since apartments are more resistant to price weakness. You might get 10-20K USD more per apartment in 1-2 years just due to CLP strengthening from 670 today to, say, 570, which I think is quite realistic. Plus there might be appreciation potential for good picks.
I stand by my prediction! And you had the privilege of reading it here first! :)

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admin
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Re: Chile Peso 2017, starts at 665.29

Post by admin » Thu Aug 31, 2017 4:07 am

My bets on electric cars are lithium, cobalt, and those that put the two together to produce the battery. All are still in the baby walking phase of demand, and are already short production and will be for the next decade at least. Copper may or may not benfit from battery boom (e.g. copper takes a hit from decentralized grid, while gaining use in cars).

Stay away from any company that is not already in production, or you will miss the boom. There are thousands of mining companies promising production some day that by the time they break even, if they are still around, it will be too late and there will be an over supply.
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Re: Chile Peso 2017, starts at 665.29

Post by admin » Thu Aug 31, 2017 4:17 am

Real estate in chile will always be about moving up the social ladder.

Buy where every poor chilean wants to move (and not where a poor foreugner wants to move), and there will always be more demand than supply to put a floor under the investment.

The dollar, your going to loose your rear no matter what you do right now if you hang on to it.
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
For more information visit: https://www.spencerglobal.com

From USA and outside Chile dial 1-917-727-5985 (U.S.), in Chile dial 65 2 42 1024 or by cell 747 97974.

HybridAmbassador
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Re: Chile Peso 2017, starts at 665.29

Post by HybridAmbassador » Thu Aug 31, 2017 4:08 pm

admin wrote:Real estate in chile will always be about moving up the social ladder.

Buy where every poor chilean wants to move (and not where a poor foreugner wants to move), and there will always be more demand than supply to put a floor under the investment.

The dollar, your going to loose your rear no matter what you do right now if you hang on to it.
That's till Trumpster fires the grand Ma at the Fed.. She wants to raise interest rate but Trumpf is against?
Hmmm, higher Dollar brings in investment from all over the world as he says, so he does not want a weak Dollar..
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mem
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Re: Chile Peso 2017, starts at 665.29

Post by mem » Thu Aug 31, 2017 8:39 pm

Interesting article on Copper prices and the Chinese credit impulse. Encouraging to those of us converting endless amounts of USD to CLP...apparently the price of copper has tracked the China credit impulse for years and we should be starting to turn a corner with China peaking and falling causing copper to drop with it in the next month or two.

If that correlation is accurate we should begin to see recovery back towards 700 in motion by Nov...which means you might want to delay conversions for awhile if you have the CLP liquidity in country to do so

by March 2018 we might be back to where USD/CLP was in March 2016...a luscious 672

Of course all this assumes a general status quo in the US. Harvey is already starting to shift things a bit...a couple more black swans and the USD might tank all by it's lonesome regardless of the copper/chinese credit impulse

http://www.zerohedge.com/news/2017-08-3 ... st-history

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