• May 07, 2017
  • by AIC The Coin Blogger
It's tempting to proclaim relief that we're not FX traders here at Art in Coins, but dealing in commodities/monetary instruments means we're quite literally in the thick of it.  Despite the recent crushing of gold and silver in the futures markets, we're really liking metals (PHYS) at these discounted prices.  From a strictly CAD standpoint, metals are a great hedge both short and long term. Overall Canadian market fundamentals are all trending down while systemic risk is heading in entirely the opposite direction.  Housing, oil, commodities, personal and corporate debt and let's not forget Trump and NAFTA pressures...  one would be very much inclined to be massively short CAD.   If it were not for extraordinary geopolitical concerns we'd be leveraging hard against the Canadian dollar.  But, because we've got Trump, ongoing concerns in the middle Middle East, North Korea, Russia and continued instability with the PIIGS nations, CAD has a chance for a strong rebound on a relative basis.  On a technical basis CAD is oversold in the near term but persistent economic weakness weighs for the foreseeable future.  We're advising our bullion and sovereign customers to cost average the dips, as always.  With the entire global financial system based on fiat currencies and the ever looming opportunity for widespread HOT conflict, the downside risk is pretty darn low.
Peace and happy investing,
Art in Coins