Is it a good time to buy American dollars? | General financial discussion | Discussion forum

Go to https://tradingeconomics.com/canada/currency and pick 'All'. When do you think CAD will go to 75 cents?

Bobbyjet11 said

Just wondering what thoughts folks have about purchasing American dollars at this time.... as an investment. Historically, the Can $ will fall back to low to mid 70's from the current 82 cents. The question is how long will it take?  

Correct me if I'm wrong, but isn't the overall historical average for the Canadian dollar ~ $0.80 USD ❓

If that's the case, I wouldn't think it's time to jump in just yet.

I'd be inclined to . . .

Dean

I pick away at it and let it accumulate since it's hovering around 80. Usually with my Tangerine Mastercard cash back. Bought some today with EQ for .7922. Slightly better than Tang's rate. My last cash conversion, waaay back when, I did a few grand @ 1.01 and more when it hit 1.10ish. Since the bank (I found currency exchanges give better rates) takes a cut of every transaction, you need a swing of about a nickel to break even.

HermanH said
The last time the Canadian dollar was at or near parity with the USD, my mother bought a swack, just as you suggest. However, she never bothered (or intended) to sell them. She seems to just like having them as cash. So, they have been sitting around for years earning squat for interest, just so that she can brag that she has all this cash bought at parity. She earned nothing from them and simply took her own cash out of circulation.  

I used mine to buy gas and groceries in WA state when our dollar was pushing 65 cents. No GIC was going to give me 30%+. Kinda hurt to let it go though. None left now save a bunch of ones for tipping the pool waitresses in Cancun.

If and when it ever goes above 90, I'll start accumulating larger amounts. With the liberals racking up debt, doubt it will ever get that close again unless the US has some serious issues. Trillion here....trillion there....adds up.

HermanH, your Mom's made about 25% since she bought at par, maybe around 2007, if she cashes in today. Plus capital gains tax vs full tax of gic income. So not a total nothing, though of course this all means nothing if she just keeps her $US.

Canadian dollar still tied to oil price, and other resources, more than $US, so that plays a role in any guessing about the future.

And comparing federal debts of Canada vs USA needs to be done via various ratios, etc, actual dollar amounts are meaningless. I have no ideas what Canada's federal debt situation is vs USA nor how total public debts (states/provinces, municipalities) compare, I suppose that bond ratings would be an indicator. For example, a few years ago I heard California's going under, then I heard Ontario's in similar shape, nothing lately on those, so who knows?

Remember to us Norberts Gambit to exchange between cdn/us and thus not paying exchange fees....