CHILE UPDATES #27
Parking Capital in Chile Becomes More Attractive By The Day
Parking Capital in Chile Becomes More Attractive By The Day
More financially secure jurisdictions, on the other hand, where the local government is well funded and unlikely to try to dip into it's citizen's accounts, obviously pose less risk to your capital.
Every day now it seems more people are waking up to the idea that holding your entire life savings in an overly-indebted nation is about as intelligent as loaning it to someone with a long, long history of spending more than they make.
The fact that Chile maintains close to zero net debt and is one of the most stable emerging markets in the entire Western Hemisphere means it's been starting to receive a lot more attention from those who want to diversify their assets internationally.
From Chinese investment banks to Austrialian mining companies to Italian agricultural firms, hundreds of millions of dollars have been invested in the country in recent years through partnerships with local companies, multi-year government contracts, and all sorts of private enterprises.
Apart from these big capital movements, smaller investors and everyday citizens (especially from Europe and the US) have also been starting to take advantage of the favorable conditions that exist in this part of the Southern Cone.
Better interest rates for savings accounts, cheaper land (and very strong property rights), more compelling business opportunities.
Pretty much anyone who sees what's available down here eventually wants in on the action.
Part of the reason the country is completely overrun with foreign investors is that there are some hurdles to getting set up at first.
Opening a bank account can be challenging if you don't have residency in Chile and since English proficiency is relatively low here, getting things done can be time consuming if you're not a fluent Spanish speaker.
Still, if you're looking at it from a long term perspective, putting in the effort now to get some exposure to this country makes a lot of sense.
Vast natural resources, a relatively small population, and a clear rule of law normally work out quite well for nations and with the dollar to peso conversion rate being quite a bit higher than it's 20 year average right now, it's a pretty attractive time to be making peso based investments.
To me, some of the best ways to play this trend include purchasing land that's selling for less than market value, Chilean gold coins (mainly because their easily tradable in the country), and brokerage accounts that pay over 4% interest with no minimum time deposit but I'm sure you'd be able to spot some of your own niche opportunities after spending just a few days on the ground.
Every day now it seems more people are waking up to the idea that holding your entire life savings in an overly-indebted nation is about as intelligent as loaning it to someone with a long, long history of spending more than they make.
The fact that Chile maintains close to zero net debt and is one of the most stable emerging markets in the entire Western Hemisphere means it's been starting to receive a lot more attention from those who want to diversify their assets internationally.
From Chinese investment banks to Austrialian mining companies to Italian agricultural firms, hundreds of millions of dollars have been invested in the country in recent years through partnerships with local companies, multi-year government contracts, and all sorts of private enterprises.
Apart from these big capital movements, smaller investors and everyday citizens (especially from Europe and the US) have also been starting to take advantage of the favorable conditions that exist in this part of the Southern Cone.
Better interest rates for savings accounts, cheaper land (and very strong property rights), more compelling business opportunities.
Pretty much anyone who sees what's available down here eventually wants in on the action.
Part of the reason the country is completely overrun with foreign investors is that there are some hurdles to getting set up at first.
Opening a bank account can be challenging if you don't have residency in Chile and since English proficiency is relatively low here, getting things done can be time consuming if you're not a fluent Spanish speaker.
Still, if you're looking at it from a long term perspective, putting in the effort now to get some exposure to this country makes a lot of sense.
Vast natural resources, a relatively small population, and a clear rule of law normally work out quite well for nations and with the dollar to peso conversion rate being quite a bit higher than it's 20 year average right now, it's a pretty attractive time to be making peso based investments.
To me, some of the best ways to play this trend include purchasing land that's selling for less than market value, Chilean gold coins (mainly because their easily tradable in the country), and brokerage accounts that pay over 4% interest with no minimum time deposit but I'm sure you'd be able to spot some of your own niche opportunities after spending just a few days on the ground.