Since US dollar has been weakening, investors have been rushing to put their money to buy gold, oil and many other commodities. Reports also show that Warren Buffett bought some foreign currencies like Canadian currency and Brazil Real.

But how do average investors like us invest in foreign currencies instead of US dollars?

Well, this is not something totally new. But it is new to me and probably to a lot of other people too. You can now invest in 8 different foreign currencies by purchasing ETFs (Exchanged Traded Fund). These ETFs are listed by Rydex Investments on NYSE to track the values of those currencies. You can purchase these currency shares like purchasing stocks and also benefit from their monthly distributions. The distributions are based on the overnight interest rates in the country of the currency it holds (similar to receiving interests on your savings for holding that currency).

Here is the list of CurrencyShares ETF offered by Rydex Investments:

I am not saying you should now dump your US dollars and move all your money to foreign currencies. But all these ETFs are very convenient investment vehicles that allow you to protect yourself against sinking US dollars. The only drawback is that you will need to pay broker commissions for the ETF transactions.

If you want to get more details and up-to-date information, you can always visit http://www.currencyshares.com/

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