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Join Me in Iceland… the Land of Double-Digit
Interest Rates
By Dr. Steve Sjuggerud
March 14, 2007
I'm serious...
Iceland is one of my favorite places in the world to visit, and it's also home to one of my favorite investment opportunities (last time around, we made more than 50% here in just over a year in boring government bonds!).
Most people have no idea about either... so this year, I intend to show you first hand. (Join me this June, if you can!)
Why Iceland for investing? The reasons are almost too numerous to list. But for now, the best reason is safety...
When the U.S. stock market busted in late February, everything went down... even "safe havens" like gold got smacked. But not my recommended Icelandic bonds...
Stocks were nailed in the U.S. starting on February 27. Since that time, the price of my recommended Icelandic bonds has gone straight up.
Still you haven't missed a thing here. The total interest rate on this bond is double-digits right now! It's currently paying 4% interest, PLUS when you sell, you get paid back whatever the inflation was over the time you owned the bond. Inflation in Iceland over the last year has been 6%, so if you owned this bond over the last 12 months, you'd have made more than 10%! (That’s 4% + 6%.)
Here's a chart of the bond's price, which bottomed out just before the U.S. stock market cracked:
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| Source: BONDS.IS |
So the price of the bond is up a few percent... you get paid more than 4% in interest... PLUS inflation, which has been 6%. And to top it all off, you get the return on the currency versus the U.S. dollar as well.
Iceland's currency has performed well against the U.S. dollar over the last 12 months – up nearly 20% from its lows last April!
While these numbers are nice, this investment really hasn't even begun to shine yet. But I strongly believe it will.
Iceland has one of the highest credit ratings on the planet. It's one of the world's safest places to live and do business, according to many surveys. Transparency International just ranked Iceland the least corrupt country in the world, out of 163 countries. The U.S. ranked 20. See www.transparency.org.
You won't find a safe government bond anywhere in the world paying you interest anywhere close to this...
Beyond all of this, Iceland is an extraordinary place to visit.
I took a group of readers there a few years ago, and our trip was unbelievable. We lucked into some really warm days – highs were in the 80s during our trip! It's much warmer than you think.
Iceland is alive under your feet. Literally. I doubt you'll see as many natural wonders in one small space as you will just outside of Reykjavik. From geysers and hot springs you can swim in to extraordinary waterfalls and stunning untouched coastline, Iceland is a trip you must make sometime in your life.
I've been to dozens of countries... most countries in Asia, the Americas, and Europe. I've been lucky enough to see most of the planet's famous sights. And I told my wife there were two places I wanted her to see someday... Argentina and Iceland.
She made it to Argentina with me a few years ago and absolutely loved it. Now, she will join me on this trip to Iceland. I hope you will too...
As I mentioned, we've done this trip with a group before, so we've got the schedule down... we'll spend a couple days as tourists, taking in the extraordinary natural wonders. We'll eat in restaurants that you'll never experience anywhere else. Like The Pearl – Iceland's finest restaurant, it's the blue dome below that rotates while you eat for a 360-degree view of the city:
And we'll spend a day sizing up investments in Iceland – meeting with local experts and Americans who can trade Icelandic bonds, and visiting a company or two.
It is a great trip. Iceland is an extraordinary place – both for visiting and investing. Come join me in June, and check it out firsthand. Click here to learn more about joining up.
To learn more about Icelandic investments, you can visit www.bonds.is Also, for short-term money, Everbank offers Iceland CDs – and it is paying roughly 13% APR!
Lastly, my dad's firm has bought the long-term Icelandic bonds I've recommended for hundreds of my readers. You can contact Dave Sjuggerud at dsjuggerud@lasallest.com or 877-539-1004. My dad went on the first trip to Iceland. One of his partners – Sam or Howard – will likely be on this trip with me.
Editor's note: Steve Sjuggerud is a regular contributor to DailyWealth, a free investment newsletter focused on the world's best contrarian opportunities. We write with a simple belief in mind: You don't have to take big risks to make big money with your investments.
Sign up today to read more investment ideas from Steve Sjuggerud.
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