When I was travelling overseas, the fellow backpackers would gleefully talk shit about Americans even though they probably had never met any. It was just the thing to do, kind of like talking shit about your boss at work. At that same time the American dollar stunk which was the first time I had ever experienced such an event. I was just happy to have my Canadian dollar worth more than the American dollar.
Hindsight is often 20/20 but one should have the foresight to stock up on USD when it’s low. Unfortunately, there’s that little thing called fear that likes to keep you in your comfort zone. There’s also that thing called poverty that keeps you from leaving your comfort zone.
If I had money at that time, I should have bought some USD for a few reasons.
- The USD would eventually be worth more than the CAD again given the historic values.
- If for some reason the USD never recovered then I could just drive 40 minutes over the border to America or fly there and spend my USD.
- If for some reason America completely collapsed then the world is probably going to end anyway so money won’t even matter.
The CAD has been lower than the USD for a few years now and just recently is at a 13 year low compared to the USD. If I had $10,000 USD then I could trade it in today for about $14,000 CAD. Even $1000 USD would give you about $1400 CAD.
When I did have money available I could get about 90 cents US for every $1 CAD. It would have still been a good investment. Now I have to wait for another American economic crisis where millions of people lose their jobs and homes just so that I can make a small profit on trading currency.
With the CAD possibly dropping lower than it already is, if you’re an American with some money to spare you may want to consider buying some Canadian dollars especially if you live close to the border or plan on visiting up here. It could be 5 to 10 years though before the value of the CAD rises significantly enough for a satisfactory return on investment.