I do have an "opinion" but I am NOT qualified to give investment advice. If I were buying small amounts of gold, 1 to 10 ounces, I would buy coin. Gold coins can be moved relatively easily across borders as they are coin and that is why the Maple Leaf is stamped $50. Many countries could have restrictions on bullion movement. If I were buying large amounts of gold, I would probably buy wafers or bars but if you're buying that much, you could afford real investment advice . There is a premium for making coin and a spread between buy and sell. Any coin shop would be happy to tell you the current prices. Coins have one slight advantage, they could become rare coins and have a premium (if you live a couple of hundred years). Of course, the opposite can happen. I have some Kruggerands and they are now out of favour. On top of that, because they (like American eagles) are only 22K, carry GST. Maple Leafs have no GST. Because you are buying "money", most coin shops will charge you extra to use your VISA.
I personally, don't think that the Canadian dollar will come under the same attack as the Asian currencies. The last time that the C$ approached 70 cents, even the Bank of England stepped in. If it dropped below 70, it wouldn't surprise me if the Americans stepped in. There is some downward pressure as everyone is expecting the Bank of Canada to raise rates but Gordon Thiessen is holding off. But he will defend the dollar at 70 cents.
Using gold coins as a currency hedge in Canada is not profitable. It would probably have to fall 7% to break even. Currency speculation should be left to the big boys. However, holding some gold as "disaster insurance" is not bad. Better than life insurance - you never live to collect on it. And gold coins are far prettier to look at than plain old insurance policies.
Hope this helps. I think I speak for most people on this thread and state that we are only giving our personal opinion and not investment advice. For that, you should consult a qualified investment counselor. |
