Sunday, May 21, 2006

Buying resource shares

I wanted to include a link to an article that I read the other day. It's by Steve Saville and the subject is buying resource shares on foreign stock exchanges. Saville examines the supposed added benefit of a "currency kicker", the notion that buying shares of a company trading on a non-US exchange will provide the shareholder with the means to profit from a strengthening foreign currency.

In the article entitled, "Can you profit from a falling US$ by buying resource shares on non-US exchanges?", Saville offers his own analysis regarding this idea and any weight it may hold.

I thought the piece made an interesting argument, well thought-out and to the point. This material would be especially interesting and useful for anyone speculating or investing in resource shares listed on non-US exchanges.