The world is changing fast and to keep up you need local knowledge with global context.
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The South African rand has always been vulnerable and is a very volatile currency. The reason for its vulnerability and volatility (the fact that it erratically and unpredictably goes up and down) is because it is often affected by political rhetoric and other economic factors that affect its value.
More recently, South Africa’s currency has been affected by talk of land expropriation, investor confidence and the fact that the country has recently slipped into a technical recession. As a result, the British pound has moved closer to the £20 mark, while the US dollar will set South Africans back at $14.34. The rand has fared badly against the Euro too.
If you are looking for a way to protect your hard earned money, one of the ways in which you can do so is invest abroad in a currency that enjoys less volatility and more stability. The American dollar is often looked favourably as a ‘shelter’ among South African investors.
This is because the US dollar, more often than not, is considered a safe haven investment. It is one of the countries least likely to default on its debt and with such an enormous economy as a backer it’s bound not to flounder too much and provide stability to investors – particularly international investors.
That’s not to say that the US dollar doesn’t come under pressure from time to time. Tensions with China can affect the currency’s value, for example, but investing in the American dollar means that savers are not as prone to as much volatility and uncertainty as they would if they invested in South Africa’s rand.
One way to expose yourself to the US dollar is through the investment of local real estate through the EB-5 visa, which is an immigrant investor visa program created in 1990, that allows eligible immigrant investors to become lawful permanent citizens by investing in a project and creating a minimum of 10 jobs in the process.
Read also: Why invest in the US for your residency?
There are many advantages to investing in the EB-5 opportunity but one thing it does offer is protection for your hard earned money. If you were to invest in a project in the US your money investment would be in US dollars. You are effectively hedging your currency risk.
And, at the end of the investment term, you would be entitled to receive your investment back in US dollars. At that point, you may choose to reinvest it or convert it back to South African rand – most likely at a very favorable exchange rate as the dollar will most likely have appreciated further against the rand.
If you invest in a strong project like PathwaysEB5’s opportunity, the downsides are really minimal. Your money would earn a small amount of interest during the term, but it would be in US dollars – one of the most stable currencies in the world. And, as the US dollar strengthens it could be the best investment to make right now.
With the uncertainty surrounding the South African economy and the unpredictable performance of the rand we believe that now is the time to invest in the US property market and in the dollar in particular.
It would be a good shelter for your rands as you observe or ride out the ups and downs as South Africa goes through its transformation and process to rid itself of corruption and bad investment choices.
In the process you will also be able to apply for residency in the US through obtaining a Green Card through the investment opportunity. And, who knows, America may also be a place where you’d consider retiring to or setting up a home or business. The EB-5 visa and Pathways’ programme in particular offers investors the choice of doing so. It offers many more opportunities and a reliable return on their investments.
Overall, it allows you to take control of your destiny as the next turn comes. It will open up doors and options for you and our family’s future, while at the same time offering you a great hedge against the rand in times of trouble.
To find out more about PathwaysEb5’s project and investment opportunities visit www.pathwaysEB5.com.