Oh Canada! Anyone diversifying into Canadian currency?

[Investin Cents]

OK, has anyone else seen the Zerohedge article, "Michael Burry : The Toxic Twins Of Fiat Currency And An Activist Fed Set The Route To Long-Term Ruin"

http://www.zerohedge.com/article/michae ... -term-ruin

one of the last comments or pieces of advice has me seriouosly considering this option:

"Burry's practical advice: open a bank account in Canada."

Short of crossing the border and doing that and facing all the various hurdles that it involves, I thought about another option - simply buying Canadian dollars from some of our friends up north. Just as a diversification currency hedge. Also part novelty, curiousity, numismatics, etc. I am sure it is legal in low amounts. I am willing to consider offers from our Canadian RC posters as well as their houghts. I would be interested in both paper (plastic???) currency as well as coins - even the recently more-debased varieties.

Thoughts anyone? Comments?? Offers????

Thanks!!!!!

[didou]

I love that idea and would be happy to send some Canadian notes to buy silver or others pieces in the Buy it Now section if the seller are open to the idea. However i won't trade directly Canadian currency for U.S., fee to convert them back here will be too costly to made any profit and i don't want the risk associate with holding U.S. currency even for a short time.

Canadian law on banking are very different from others country, they are legally 'forced' to open you a account unless you commit fraud or other similar crime, although i don't know how these apply to U.S. resident. These law only apply to bank and do not apply to cooperative funds like Desjardins. Take the time to read this before trying to open a account here :
http://www.fcac-acfc.gc.ca/eng/consumer ... _1-eng.asp

Canadian notes are only in paper for now, i think they will implement the polymer (plastic) note on the $100 and $50 at the end of 2011/beginning of 2012. They will follow with others lower denomination after that.

Agressive Metal is already trading coins including Canadian one in the Wanted to Buy, Rent or Trade section.

[Investin Cents]

"i don't want the risk associate with holding U.S. currency even for a short time"

Nice.

I'll consider the silver trade.

So it begins - "barter" (sort of) using silver.

Sad, huh? Actually makes me more angry than anything!

[psi]

I had been thinking of getting a US dollar account with my bank to play the exchange rate on transactions I was doing anyway but I believe there is an extra charge for that at my bank. Paypal is an option for converting between the two currencies too, not sure what kind of spread they operate on if any but the charge to transfer to your bank account is pretty small.

[didou]

"i don't want the risk associate with holding U.S. currency even for a short time"

Nice.
...

I don't believe it can be done. You can probably already trade U.S. paper for Canadian paper at your bank in USA. It may take 3 weeks to pass custom and get here, anything can happen during that time plus the us dollar is losing ground every other day. It all depend on custom on which i have no control over. Look at the history of 30 day canadian/us dollar exchange and who know what even may happen in the next 3 week/month dropping the value by 5 or 10%. Plus i have to pay the fee at my bank to convert them back into Canadian. I would have to charge you a heavy premium and risk to loose for no real benefit.

Thing started to change fast, and for example the last silver i've got already gain $4 per ounce by the time it arrive at my home from the time i purchase it. Silver 30 day is $34 up to $43. For silver/metal i don't have a problem with it at all, for U.S. currency however it's not a deal that feel good to me.

[psi]

For actual paper currency a foreign exchange place can often give you a better deal than a bank would, but it might be hard to find one if you're not near an urban area.

[AGgressive Metal]

I think his advice was somewhat tongue and cheek, but Canadian Dollars are not a bad thing to have if you are near the border. I just sold $250 or so to a RC member in Seattle area.

[henrysmedford]

Here is a quick way in the US to make money using Canadian funds. Make a bet the you can pick up a Nickel with a magnet and then pull out an older Canadian Nickel and show them that pure nickel is magnetic-- I have won a few dollars on this one.
From answers. com http://wiki.answers.com/Q/Is_a_nickel_magnetic

Answer

Pure nickel is magnetic. However, US nickels aren't magnetic because they are made of an alloy (a combination of different metals) that's mostly copper.



However, older Canadian nickels are pure nickel, so they are magnetic. Newer Canadian nickels are steel so they're still attracted to a magnet.


Free money is the best money. Also the magnet on the coin counter at the bank always his some Canadians stuck on it.

[nero12345]

it's scary sending cash in the mail. but would do a cash for silver trade. jesh growing up the greenback was so strong my family couldn't afford to travel to the states too often because of the exchange rate. crazy how things have changed. its weird hearing how strong the canadian dollar is but i wonder if the dollar is strong or the U.S. dollar is so weak right now. anyway if anyone wants to trade let me know

[Tommybee]

I'm not diversifying into Canadian currency. However, I am diversifying into Canadian money. I've been buying 80% Canadian dollars and half dollars.

[Investin Cents]

I think his advice was somewhat tongue and cheek

Yes, I think Mike Burry's quote was that - sort of. But you gotta realize this guy made millions off of guys who were paid millions up front to sell and promote the junk they were selling - and even they had no idea what it was. So even the idle musings of Burry are worth more than the advice of these so-called Wall Street geniuses.

I suppose the easiest trade is what I am doing now- just accumulating bullion PM's and the occasional Candian coins here and there.

It was just a thought for discussion and possibly for serious consideration. Thanks all!

[JadeDragon]

I maintain both Canadian and US balances in Paypal. Super easy to add a Canadian balance. That would be the fastest easiest way to acquire Canadian dollar exposure. I've been feeling bad about my US bank account depreciating

[Slaphot]

I am thinking of doing this myself. When you log into Paypal select "Profile" you might have to select "Classic Profile Version". Then select "Currency Balance". You can convert your US funds to a list of different currencies. I don't think there are any fees. If anyone has done this please post you experience. Thanks!

EDIT- I just check the website and they add 2.5% to the exchange rate which they say is competitive with banks. They also say the rates are updated twice a day, so you maybe able to get a good deal if you act quickly when there is a big move.

[theo]

I'm not sure if this was mentioned, but you could try E bay. I've been buying lots of Canadian and Swiss currency (mostly coins) there for about a year now. I've gotten a few silver coins in these lots as American holders of foreign currency don't always know which coins are silver.

http://cgi.ebay.com/61-Face-Canadian-Cu ... 588d8ef59d

[John_doe]

OK, has anyone else seen the Zerohedge article, "Michael Burry : The Toxic Twins Of Fiat Currency And An Activist Fed Set The Route To Long-Term Ruin"

http://www.zerohedge.com/article/michae ... -term-ruin

one of the last comments or pieces of advice has me seriouosly considering this option:

"Burry's practical advice: open a bank account in Canada."

Short of crossing the border and doing that and facing all the various hurdles that it involves, I thought about another option - simply buying Canadian dollars from some of our friends up north. Just as a diversification currency hedge. Also part novelty, curiousity, numismatics, etc. I am sure it is legal in low amounts. I am willing to consider offers from our Canadian RC posters as well as their houghts. I would be interested in both paper (plastic???) currency as well as coins - even the recently more-debased varieties.

Thoughts anyone? Comments?? Offers????

Thanks!!!!!

In short, yes I have been investing in the Canadian dollar. In my opinion the Canadian surge is due to the deficit the united states has to Canada. With rising inflation the us made a move towards Canada rather than china (they aren't as dumb as I thought). Canada also has a significant GDP to population ratio. (no lazy people to leach them dry I suppose)

I honestly have no explaination for the Australian dollar surge though. Anyone have any thoughts on this one?

[John_doe]

I'm not sure if this was mentioned, but you could try E bay. I've been buying lots of Canadian and Swiss currency (mostly coins) there for about a year now. I've gotten a few silver coins in these lots as American holders of foreign currency don't always know which coins are silver.

http://cgi.ebay.com/61-Face-Canadian-Cu ... 588d8ef59d

I might be buying some francs in the near future. I'm steering clear of the euro however with the financial turmoil in western Europe.