Currency Questions

The value of the euro has dropped considerably against the pound. Is this trend likely to continue?

The pound has picked up very slightly on the euro recently (currently €1.26) and the general view among independent observers is that the rate should continue to recover if the doom-mongering from the Bank of England and mortgage lenders recoils. That is to say talk of a weakening UK economy and dipping house prices has led investors to shy away from the pound. However, with a return to slightly more positive forecasting, some analysts suggest that if the euro could close in on this year's average of €1.30 to the pound then a further resurgence to 2007 levels (average €1.40) are possible.

How much money is there in the world?

It is impossible to put a precise figure on the world's monetary supply, although there are measurements and statistics to draw upon. In 2000, the CIA in the US estimated gross world product to be US$43.6 trillion. This is not so much the amount of cash available in the world, rather it is, like the gross domestic product of any country, the value of goods, services and investments as well as hard cash and money held in bank accounts and funds.

How is the value of a bar of gold determined?

Precious metals are usually weighed in troy ounces and, like currency, the price fluctuates on the open market. There is also a mechanism called the Gold Fixing, in which five members of the London Bullion Market Association determine the price of gold on a daily basis. The current price is in the region of £450 per troy ounce (31g).

Is gold a good investment?

There are different ways to invest in gold – bullion, coins, stocks, options and futures – and like most investments some are riskier than others at different points in time. The price of gold has recently seen some very high prices and unpredictable fluctuations. Also, as gold is priced in US dollars as standard, you will need to factor the strength or weakness of the dollar against other currencies into the equation.

How much does the monarchy cost British taxpayers?

The monarchy is said to benefit from a total of £88 million a year, some of which comes from taxes and some from investments and property. Taking the number of taxpayers in the UK to be around 40 million, this works out at a cost of £2.20 a year to each taxpayer.

Is it better to buy or rent somewhere to live?

Phrases such as “renting is money down the drain” are commonplace, but renting could well be a better option. If you have saved up a deposit to buy a property with a mortgage, you are essentially investing everything in one pot. Of course your investment may bear fruit if prices fluctuate in your favour. If you can afford a deposit that is attractive to today's wary mortgage lenders, then you might also wish to compare your probable mortgage payments with rent prices: rents are lower in some areas of the country than in others. Renting also allows you a lot more flexibility because often as little as one month's notice is required to move out of a rented property, whereas it is likely to take a lot longer than that to move from a position of ownership. Of course, factors such as the security and pleasure of living in your own home also need consideration.

Is it possible to get a loan to help pay off credit card debts?

Yes. Banks may give you a loan if you can provide assurances that you will be able to pay it back. They may also offer to consolidate your debts into one repayment loan. There are many other companies offering this kind of option, but be aware that the interest rate on the loan must be lower than the interest on the credit card debt for you to benefit financially.

Will I have a black mark on my credit history if I am a few days late paying one credit card bill?

Although they will probably charge you, most credit card companies won't report one minor infringement to the credit bureaux. You would have to be around 30 days late or more to suffer some penalty and abuse the system on a regular basis to do any real damage to your credit rating.

What happens to my assets if I die without a will?

Firstly, this is really not advisable if it can be avoided, as you are giving up the power to make your own choice and the process of dividing up your estate will take much longer. However, there are of course exceptional circumstances. In England and Wales there are many permutations depending on the value of the estate and living relatives or spouses. In the simplest case, if the deceased's estate is worth £125,000 or less the entire estate goes to the surviving spouse. In any more complex a situation than this the estate will be apportioned as directed by a series of steps set out by law.

I want to sell items and use Paypal to collect payment. Will I have to pay any fees?

It is free to set up an account but you will pay fees on money paid to you from credit or debit cards. This is 3.4 per cent of the transaction amount plus 20p. You will also be charged 25p to transfer less than £50 to a UK bank account. Funds received from other Paypal accounts are not charged a fee.

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