By ghaccess | Tags:Bullion, Gold, Gold Coins, Gold Maple Leaf, Hard Assets, Precious Metals, Silver, Silver Coins | Category:Blog
For Canadians, precious metals have gotten more expensive in the last few months. The lower Canadian dollar has deterred many Canadian precious metals buyer simply because they do not want to deal with the higher exchange.
There is a feeling of almost resentment at the exchange rate and a sense that it could change at a moment’s notice, making bullion buying more amenable. We all want the best possible price right? Wrong. Buying gold and silver is not necessarily about the price one pays. If this were the case Canadian’s would be buying as much on a percentage basis as India and China. We simply are not. Purchasing precious metals is a vote against fiat currencies and a safe haven against the rise and mostly fall of these currencies over time. Canada is not an exception to the rule. It is a fiat currency just like the US dollar, the Pound, the Yen etc.
Should the lower Canadian dollar stop people from buying bullion? That may depend on how you answer the next question; Were you expecting a rate cut and the subsequent drop in the Canadian in the first place? There is little doubt that we have reached a stage of mass distortion in all markets. We should expect the unexpected. If one did not expect the dollar to drop then it would be just as difficult to predict when it will go back up. Forget the fact that silver trading in the low $20 CAD is already ridiculously cheap. Forget the fact that gold and silver are already extremely undervalued against the excess of money creation and debt. Owning bullion is a hedge against volatility, a hedge against the unexpected. Ask Russians if they would have liked to own gold in the last six months as their currency fell and they started experiencing inflation. Ask anyone in Cyprus, Argentina, or Venezuela… heck; ask Canadians if they would have loaded the boat on gold and silver back in December had they known it would have been more expensive today.
Holding bullion is about protecting wealth. As a currency that has been a store of value for centuries, it has a much better track record of maintaining value than volatile or depreciating fiat currencies. For those that have more than 10% of their net worth in bullion they certainly have the luxury of waiting for additional buying opportunities. For those building a bullion portfolio, waiting for an opportune time to buy could be a risky affair. In the end, I believe that what will be important is how much one owns rather than the price one paid.
Proud member of:
Follow us on
By using and/or accessing this website, you agree and confirm that all intellectual property rights (including, without limitation, all copyrights) in the content (including all text, pictures, graphics, charts or other information and materials) displayed and used on this website (collectively, the “Content”) are owned by Guildhall Wealth Management Inc. (“Us”) or others who have permitted Us to display content owned by them. This Content is protected by law, including, but not limited to, Canadian copyright law and international treaties, trade-marks, trade dress and/or other proprietary rights. All rights are reserved by Us in the Content.
Guildhall Wealth Management Inc. (“GWM”) does not conduct transactions in securities, futures contracts or options on futures contracts. As such, this Risk Disclosure relates only to the ownership, purchase and sale of physical precious metals and other products (“Products”.) GWM makes no representations as to the advisability of investing in Products. GWM encourages you to understand your risks of investing.
Individuals considering buying or selling such Products are urged to obtain additional information and to ask specific questions and obtain specific answers concerning the risks.
In purchasing Products, informed decisions, including whether or not to participate at all, should be based on a thorough understanding and careful weighing of the risks associated with such ownership. Additionally, what may be attractive and appropriate for one individual may involve risks that are totally unacceptable for another individual. Purchases of these Products are not suitable for everyone. It should be read and thoroughly understood before any decision is made to engage in such activities. You are urged to thoroughly research and understand the type of activity contemplated before entering into any agreement with GWM.
Before you open an account with GWM, you are urged to review the Client Account Agreement and all incorporated documentation, including the Risk Disclosure Statement, the Client Account Terms and Conditions and the Depository Custody Agreement. As well, you are urged to study the nature of the physical precious metals markets, and examine the risks and rewards involved.
Use of any information obtained from or through this website is entirely at your own risk. GWM does not routinely moderate, screen or edit any third-party content. Such information, statements, views and opinions are expressed as of the date of publication, and are subject to change without further notice and do not constitute a solicitation for the purchase or sale of any investment referenced on this site. ALL USERS OF THIS WEBSITE ACKNOWLEDGE AND AGREE THAT NO PERSON OR ENTITY INVOLVED WITH THIS WEBSITE SHALL HAVE ANY LIABILITY FOR ANY LOSS OR DAMAGES, INCLUDING WITHOUT LIMITATION, CLAIMS FOR LOSS OF MONEY, ERRORS, DEFAMATION OR OTHER EXPENSES, RELATING TO ANY PLACEMENT OF CONTENT HEREIN, OR ANY RELIANCE ON ANY INFORMATION CONTAINED HEREIN, OR THROUGH ANY LINKS CONTAINED IN THIS WEBSITE.
There is no guarantee that this site will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. This website assumes no responsibility for any omission, interruption, deletion, defect, delay in operation or transmission, communications line failure, theft or destruction or unauthorized access to, or alteration hereof. The website is not responsible for any technical malfunction or other problems of any computer, telephone or other equipment, or software occurring for any reason, including but not limited to, technical problems or traffic congestion on the Internet or at any site or with respect to this site or combination thereof, including injury or damage to any person’s computer, mobile phone, or other hardware or software, related to or resulting from using or downloading any content hereof.