I have a 50-euro note and a 5-euro note sitting on a dusty corner of my dresser. They sit there because I brought them back home in early February after I had attended the World Money Fair in Germany.
I bought them at an effective exchange rate of approximately $1.44. There is a fee involved to get cash and that is incorporated in the price.
World Coin News staff member George Cuhaj attended a world conference on medallic art in June in Finland. He brought back an unspent 20-euro note. His effective purchase price was at an exchange rate of $1.30.
He wants to sell it to me when I go to the 2011 World Money Fair in January in Berlin because he has no plans to visit Europe again in the near future.
Naturally, the 20-euro note has become the object of office banter.
When the euro rises, I yell over to George that I cannot buy his note today because it is too expensive.
On days when the euro drops, I yell over to his desk that my goal is to buy it back for less than he paid for it.
So it goes.
At some point, I will have to acquire it as I get ready to visit Europe. What will I pay for it?
I have no idea. In its short existence since 1999 the euro has yo-yoed down from its initial exchange rate of $1.17 to 82 cents, then up to $1.60, back down to $1.19 and now it is around $1.37.
So will George make a small profit on the note or take a small loss by the time the World Money Fair is ready to open in the last week of January?
Your guess is as good as mine – probably better.