In any economic downturn, investors buy gold. When the stock market starts to fall, or a currency undergoes devaluation, investments in gold almost always start to climb. Why is this, and why do investors pick gold during tough economic times? While each investor has their reason for investing in gold during an economic downturn, the three most popular ones are:
- As a hedge for other investment,
- As a safe-haven investment,
- As a time-tested investment.
Each of the reasons above confers certain advantages over traditional investments like stocks, oil, and index funds. In this article, we briefly explore each reason, helping you understand why you should buy gold in preparation for an economic downturn.
Hedging Your Other Investments
Investment hedging seeks to offset a falling value of one asset against a rising value in another. In an economic downturn, asset classes like stocks, indices, and oil typically fall. To offset this fall, investors invest in asset classes that have an inverse relationship to these assets. Gold is one such asset. In most economic downturns, the price of gold rises as those of other investment classes dip. Because of this, gold is considered a good hedging asset against other investment asset classes. It’s important to note that gold does not always enjoy an inverse relationship to other assets. However, gold prices tend to be resilient to economic downturns.
Buy Gold! It’s A Safe-Haven Investment
A safe-haven investment is an asset class historically proven to weather economic downturns. Gold demonstrates this resilience through its historical pricing. Investors consider gold a safe-haven investment due to its ability to ride out economic downturns with little loss in value. The main reason behind this price resilience is the perceived value of gold. While other investments have what is called fair value (a sale price agreed upon by a willing buyer and seller,) gold is considered to have actual value. That is, a physical piece of gold is regarded as having a constant value that does not rely on external factors. As such, investing in gold in anticipation of an economic downturn offers a safe place to preserve your funds.
Before money was invented, gold served as the ultimate de facto currency. Even when money was invented, its value came from what is known as the gold standard. Today, gold continues to enjoy this privilege as a time-tested store of value. Factors that have helped prop up the cost of gold include a controlled and finite supply, various industrial and social uses, and a long-standing history of value. Investing in gold in preparation for an economic downturn offers a well-established investment class that is well-respected across the world.
Should you buy gold?
Although historically gold was considered an investment for the rich, today, gold investments are accessible to anyone. If you are worried about the potential devaluation of your current investments (including cash), gold may be a good option for you. Take some time to consider whether you want to hedge your other investments, preserve your capital, or add gold as an additional investment to balance your portfolio. Whatever choice you pick, CanAm Exchange can help you invest in gold at your investment level. Get in touch today and find out how you can purchase gold in anticipation of an economic downturn.
US Dollars is a currency that often stays high in demand. Since the US shares a border with Canada, it is easily accessible, and an uncountable number of people travel back and forth between the US and Canada daily. However, it is not only the border that separates the two countries, but it is also the currency that is different in each of the nations. If you, too, are looking to buy US Dollars, your search stops here. We provide just what you need.
Throughout the country, multiple places will offer you currency exchange services. These services are present at different locations. For example, you will be able to find an exchange counter at Pearson Airport in Toronto. However, each service provider has its interest rate, and you should not expect to get the same price everywhere.
Bridges Near The Border:
If you are traveling to the US, you will be able to find exchange counters near Ambassador Bridge in Windsor. Since it is at the busiest border between the two countries, there is a vast number of exchange transactions that take place at the currency exchange counter available at the location. It is the main reason why when you visit the counter, you may find an inflated exchange rate for US Dollars.
Hotels are another place where you can easily find US Dollars. These hotels, such as Ceasars, is a famous tourist attraction and require a higher volume of foreign currency reserves to be able to convert the amount for their customers. It is a probable cause for lower exchange rates in hotels. It would be best if you kept a hotel to be the last resort and try to get the conversion done beforehand.
Malls and Train Stations:
Malls and train stations are a few areas where you are likely to find exchange counters where you can get small amounts of currency exchanged to US Dollars. These counters are for emergency purposes, and you might not get the best rates at these places.
Throughout Canada, it is common for you to come in contact with individual brokers. These brokers claim to offer you the best exchange rates for US Dollars. However, you should always check for their identification before you decide to trust them. There is a possibility that those claims turn out to be nothing but false promises.
If you are traveling on foot you will often come across currency exchange services set up as exchange kiosks. These kiosks are available at multiple locations and easily accessible. However, their exchange rates are known to be the highest in comparison to other places.
Banks in Canada:
Banks are the last option that we would recommend you to use. Though they are the most accessible for anyone, their service standards, and their exchange rate often makes them your worse choice. A bank is full of international currency, and you purchase US Dollars from a bank. However, you will find a visible difference in the exchange rate that they quote and the amount that you will receive at the end. It is because of a lot of processes and hidden fees that banks charge on top of the interest rates. If you decide to go to a bank, there is a high chance that you will lose a lot of money.
In addition to the places specified above, you can also get your conversion done from CanAm Currency Exchange.
What is CanAm Currency Exchange?
CanAm offers you the best currency exchange services to have your amount converted into US Dollars. With our presence all over Canada, we take pride in promising you the lowest exchange rate in comparison to any bank that you can find throughout the country.
How does CanAm work?
CanAm is an independent organization that works closely with banks to be able to offer you the best currency exchange services. Our interest rates are directly aligned, and we monitor it regularly, which is why we can promise you a lower price in comparison to what you might get from a local bank or kiosk.
Outside of our Windsor Head Office. our presence is completely virtual because of this we are free from excessive overhead costs and can sustain the rates that we commit to our clients. All you need to do is complete our registration form to get started. You can request us to lock in your quote. We guarantee that our rates will be lower in comparison to any bank or secondary currency exchange service provider available to you within Canada.
Once we have your approval from the quote, you can transfer us the funds via bank transfer and receive your converted currency on the account details that you provide within 24 hours, even as soon as same-day.
Benefits of using a Currency Exchange Service:
The benefits of using a currency exchange service is really simple: you get more money by saving on fees. This is the essential difference between a service and a bank. However, it should be noted that while you may pay less in fees at a currency exchange, the exchange rate can drastically differ between different foreign exchanges. For instance, exchanging your currency at the airport is one of the worst places you can do this because the rates are significantly worse than ones you would find outside of the airport. This is because these services know that you’re either leaving the airport or are coming into the city and they prey on this desperation to either get rid of your cash or to get your hands on some.
In Canada, you are able to find multiple currency services at airports, train stations, bus stops, hotels, markets etc. These services are present at every point to help you have your currency exchanged whenever you need it.
With the help of exchange services like CanAm, you can easily take care of any last-minute emergencies. For example, if you book a last-minute trip somewhere in the USA, a exchange service is the best place to go to exchange your currency. Another added bonus is that lots of exchange services are open on the weekends as well and on the weekdays, they generally have better hours than most banks. This gives you a more convenient option to exchange your currency.
Money exchange services are a safer and wiser way to have your forex exchanged. It saves your time and lets you enjoy the benefit of having a better exchange rate than other service providers. Why pay more when you can gain more?
In addition to the above, by working with a exchange business like CanAn Currency Exchange, you are supporting local businesses versus corporations and banks. Secondly, exchanging your currency a a currency exchange is also better because we have a large inventory in stock of various currencies instead of having to wait for days at a bank. The benefits seem endless!
How do I obtain another currency?
The best way to obtain another currency is by visiting a currency exchange and exchanging your currency for another currency. Currency exchanges are the best way to get your hands on foreign currency because their rates are more favorable to the buyer. Conversely, if you were to exchange your currency at the bank, you’re more likely to pay higher fees. Services are independent bodies that offer you these exchange services at a lower fee and offer you a better exchange rate. However, it is advised that you do your research before deciding on a specific exchange services to get your money exchanged from. Someone else might offer you a better rate.
To learn more about how to get started with a exchange service like CanAm Currency Exchange, click here to Register for your free account now.
At some point in our lives, we dream of making the sea-change. Moving from somewhere cold to somewhere warm, from the mountains to the ocean. And for many Canadians, that means making a simple hop across the border so we can live out our golden years or retire in the US. Still close enough to home that we don’t miss it as much, but far enough that we get the change we’re seeking in our later years.
If you’re considering retiring in the US, there are a few things you need to consider.
Visas and Green Cards
Back in the 1970s, it was simple to get a green card into the US for retirees. All you had to do was ask. Today though, the process is a little more complicated. If you want to move to the US to retire permanently, you need to either get a green card, or become a permanent resident. If a family member lives in the US, they could sponsor you. But this isn’t always feasible.
Another way you can go to the US is if you have enough savings and net worth to make an investment in the US (usually between $500K and $1 million) – which can allow you to acquire an investor visa, which lasts about five years. And the other way, is to become a permanent resident, which means you’re no longer a citizen of Canada and have to relinquish all rights as such.
One of the most popular options is known as the “snowbird” method, whereby you spend six months in the US and six months in Canada. This allows your health care and taxes to stay the same (with Canada) – and you get the best of both worlds.
If you’re moving to the US as a snowbird, dual health care coverage is not only imperative – but it makes life easy. If you have a pre-existing condition, Obamacare allows you to still receive adequate health care coverage for your time in the US; while your usual Canadian health care will cover you for the time you spend back home.
When you retire in the US, one of the biggest benefits is the tax benefits. Withdrawing your Canadian dollars from your retirement account is actually tax-free. You can also still collect your CPP pension when you’re living in the US as its based on your work history, not where you choose to live after retirement.
Currency & Investment
It’s important when you move to another country that you have your finances in order. CanAm Currency Exchange can help you get the best rates when you transfer your funds from Candadian dollars into US. We’ll ensure you get more bang for your buck – so that you can live the stress-free, retired life you dream of. If you want to know more about investments as well, we can help.
If you’re considering the move and retire in the US, we’re sorry to see you go! But we’re here to help make the transition smooth for you. Get in touch with our team today and happy retirement!