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 Replies: 5,649 / Views: 461,186 |
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Pillar of the Community
 United States
3789 Posts |
yea that CAD is not done going down yet. yet another strong down trend that isn't showing any signs of stopping.
Dollar continues to look like the strongest uptrend in currencies.
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Pillar of the Community
United States
1804 Posts |
@punman Quote:
Yeah - as a Canadian I don't want to buy a bunch of silver and gold right now. It seems like three years ago the U.S. - Canadian dollars were at par with each other. Now my $1000 Canadian will only buy $700 U.S. The Canadian dollar has really fallen in three years. Especially the last 18 months.
I don't want to buy bullion now because, even if gold/silver stay about the same for the next year, if the Canadian dollar gains back 10% of its value, I am out 10%. Of course the other possibility is that the Canadian dollar falls further in 2016. I don't even want to think about that. Food imported from U.S. (especially fresh products we cannot grow in winter) are starting to rise a bunch. Sir, I never thought of it, but does the dropping CAD effect the price of stuff like home appliances, cars, gas, computers etc? And yes, as a suggestion, I would hold off on PMs for now; and I am in US dollars. |
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Pillar of the Community
Canada
849 Posts |
To answer does the dropping CAD effect the price of stuff like home appliances, cars, gas, computers etc?
It would up the price if they are being shipped from USA to Canada in U.S. dollars. The only ones in Canada getting a boost from the low Canadian dollar are exporters in Canada shipping to U.S. I were selling you metal drums from Canada three years ago for $1000 Canadian you were paying $1000 U.S. This month you would still pay $1000 Canadian but it would cost you $700 U.S. That would benefit me because you might buy more drums from me as they are really cheap for you now or other people needing drums in the States might stop buying local and buy from me.
Sadly I am not an importer so this does not help me.
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Valued Member
Canada
128 Posts |
If trade is balanced and everything you export you get .70 cents on the dollar and everything you import you pay 1.38 on the dollar eventually you hurt your standard of living, not a good long term plan.
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Pillar of the Community
United States
1804 Posts |
Quote:
If trade is balanced and everything you export you get .70 cents on the dollar and everything you import you pay 1.38 on the dollar eventually you hurt your standard of living, not a good long term plan. Some one help me out here. I am not saying Canada devalued the currency deliberately. But in yesteryear some countries did it. High School history 101 Was that called BEGGAR THY NEIGHBOR Believe it was a way to keep the homes folks working. Not too sure. Not even sure if it worked  |
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Valued Member
Canada
128 Posts |
I believe our dollar fell because it followed oil and perceived future weakness in oil as well as our economy. I think some govts try to use a low dollar to spur jobs on, I don't think it has worked up here. All the pm's I bought in the last two years have pretty much held their value because of our dollar dropping, for me its been a good investment, but it gets a lot tougher to figure out from here.I am just looking to try to own something that holds its value.
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Pillar of the Community
Canada
849 Posts |
Agreeing with sbr. Canada is pretty heavily resource based - oil, potash, silver, gold, mining, natural gas, etc. When those items are not in demand and prices dropping, Canada does not look so good. Upping Canadian interest rates would boost the Canadian dollar but we have increasing unemployment and a cooling of the economy right now so that would just hurt many people.
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Valued Member
Canada
343 Posts |
Haven't always been great at forecasting the future but 2016 looks to be another year where the Canadian $$ will suffer more (I see sub 67 - 68 cents if oil prices do not recover) and silver generally will be under pressure lower. Strategy for 2016 is to be more patient when making purchases, especially at auctions as I feel there are going to be a larger number of collections coming up for sale and more downward pressure on prices. That also means buying numismatics - even at half or 1/3 list price is no guarantee of being able to flip on ebay or kijiji. |
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Valued Member
Australia
491 Posts |
We had a Treasurer in the late 1980's to early 1990's who told the nation of Australia that we needed to go into a forced recession.
Paul Keating the treasurer of the time did this.
Then soon after our forced recession there was a world recession and in approx 1991 to 1994 our home loan interest rate from a bank went up to 19.25%.........
Not a good look! Lots of people lost everything.
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Pillar of the Community
United States
711 Posts |
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Sir, I never thought of it, but does the dropping CAD effect the price of stuff like home appliances, cars, gas, computers etc? The big impact is in foreigners buying housing and land and real assets inside Canada. What would have cost you $100,000 US a few years ago now only costs $70,000 US. Perfect time to buy that family hunting cabin for those interested. Great website for international real estate listings for those looking to browse. Note the Canadian properties are quoted in Canadian Dollars, so basically for every $10,000 Canadian, you would owe $7,000 American. http://www.landwatch.com |
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Pillar of the Community
United States
3349 Posts |
"Two minutes ago I would have sold my chances for a tired dime." Fred Astaire
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Pillar of the Community
United States
1804 Posts |
The sell off in the indexes (stocks) does not look good, for the bulls. As (when) the margin calls go out, many will sell what they can sell.  PMs  ~`~`~`  ~`~`~`  If junk Morgans or Peace dollars ever get back to $10 -- $12 I want to load the boat.  |
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Pillar of the Community
United States
3789 Posts |
how about that reversal in the PMs so far this AM. Came out of the gates swinging higher and then immediately reversed those gaps.
This price action tells you all you need to know about gold and silver- they are still in downtrends,which should be obvious to everyone at this point but the action today says clearly market participants are not looking at gold and silver as a safe haven. That distinction goes to bonds and the USD.
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Pillar of the Community
United States
5856 Posts |
I am surprise how gold held out with these downtrends.
The YEN is the only one seem to hold up against the US Dollar.
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Pillar of the Community
United States
1804 Posts |
yup7676 Quote:
This price action tells you all you need to know about gold and silver- they are still in downtrends,which should be obvious to everyone at this point but the action today says clearly market participants are not looking at gold and silver as a safe haven.  BTW Has anyone looked at PLATINUM (or) PALADIUM |
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Replies: 5,649 / Views: 461,186 |
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Posted 12/30/2015 10:02 pm
