| Author |
 Topic  |
|
|
Nickelmeister
Penny Hoarding Member
Canada
588 Posts |
 Posted - 10/22/2008 : 19:35:56
|
It is an interesting phenomenon for somebody living north of the border. As a regular buying of PMs, the recent nosedive in spot prices (which are quoted in US dollars, obviously) has had effectively no impact on the daily prices here in Canada. The CAD/USD exchange rate has changed almost directly and simultaneously with the fluctuation in the price of gold particularly.
Put another way - the price of gold in Canada, when adjusted for Canadian currency, has not changed in a while. This tells me that the fall of gold (and to a lesser extent, silver) is exclusively as a result of a strengthening US dollar and nothing more.
Comments?
|
www.WinnipegGoldBuyer.com
Standing offer for sale of quality, second-hand solid gold jewellery:
<$100 USD worth - spot +25%, plus actual shipping
$101-500 worth - spot +20%, plus actual shipping
$501-1,000 worth - spot +15%, plus actual shipping
$1,001+ worth - spot +10%, plus actual shipping |
|
|
rodzm
Penny Pincher Member
USA
143 Posts |
Posted - 10/23/2008 : 00:36:03
|
quote:
Originally posted by Nickelmeister
It is an interesting phenomenon for somebody living north of the border. As a regular buying of PMs, the recent nosedive in spot prices (which are quoted in US dollars, obviously) has had effectively no impact on the daily prices here in Canada. The CAD/USD exchange rate has changed almost directly and simultaneously with the fluctuation in the price of gold particularly.
Put another way - the price of gold in Canada, when adjusted for Canadian currency, has not changed in a while. This tells me that the fall of gold (and to a lesser extent, silver) is exclusively as a result of a strengthening US dollar and nothing more.
Comments?
You may be spot on on your assessment but I find the strengthening of the dollar to be rather fast. Let me give you a good example...a few months ago Visa IPO'd at $44, opening PPS was $55...ran up to $89 within a matter of 2 months and if you look at it now??? Its sitting at $49. It goes to show that when something runs up too fats, the fall will be just as bad if not worse than the run-up. My advice is to load up on PM's because when the dollar tanks, it will tank hard.
With the way our economy is and with low interest rates, do you really think the dollar should be getting stronger right now?? Certainly not. Im not a pro at economics, far from it...but common sense tells me that the strengthening of the dollar will be very short lived |
 |
|
|
jadedragon
Administrator
Canada
3788 Posts |
Posted - 10/23/2008 : 03:08:51
|
| Yup you nailed it Nickelmeister. |
“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.” – George Bernard Shaw.
Why Copper Bullion ~~~ Interview with Silver Bullion Producer Market Harmony
Passive Income blog |
|
|
| |
Topic |
|
|
|
Buying bullion in Canada
Forum Locked
