{"id":31863,"date":"2012-08-27T07:22:25","date_gmt":"2012-08-27T11:22:25","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/2012\/08\/looney-for-the-loonie-canadas-commodity-currency\/"},"modified":"2012-08-27T07:22:25","modified_gmt":"2012-08-27T11:22:25","slug":"looney-for-the-loonie-canadas-commodity-currency","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2012\/08\/27\/looney-for-the-loonie-canadas-commodity-currency\/","title":{"rendered":"Looney for the Loonie: Canada\u2019s Commodity Currency"},"content":{"rendered":"<p>Article by <a href=\"http:\/\/www.investmentu.com\/\" target=\"_blank\">Investment U<\/a> <\/p>\n<p>There&#8217;s no doubt about it&#8230;<\/p>\n<p>Over the last 10 years (and more) the place for investors to be has been the commodities market.<\/p>\n<p>Since August 2002:<\/p>\n<ul>\n<li>Gold prices skyrocketed over 400%.<\/li>\n<li>Silver popped 666%.<\/li>\n<li>Oil prices jumped 265%.<\/li>\n<\/ul>\n<p>Meanwhile, the S&amp;P 500 ticked up 50%.<\/p>\n<p>And it seems, despite a setback caused by the 2008 financial crisis, the bull market in commodities could have legs for years to come.<\/p>\n<p>Legendary investor Jim Rogers agrees.<\/p>\n<p>He told <em>Business Times<\/em> just a few days ago, &#8220;This bull market in commodities has been going on for 13 years, which is a long time, but I still don&#8217;t see a major supply. Until supply starts coming in a big way, you&#8217;re not going to have the end of the bull market.&#8221;<\/p>\n<p>In fact, in the past 200 years, the average length of commodity bull markets lasted anywhere from 17 to 22 years. One even ran up for 40 years straight.<\/p>\n<p><a rel=\"nofollow\" target=\"_blank\" href=\"http:\/\/www.investmentu.com\/wp-content\/uploads\/2012\/08\/topchart1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-30683 alignnone\" title=\"topchart\" src=\"http:\/\/www.investmentu.com\/wp-content\/uploads\/2012\/08\/topchart1.jpg\" alt=\"war chart \" width=\"600\" height=\"192\" \/><\/a><\/p>\n<p>It\u2019s good news looking forward for commodity investors. But it&#8217;s also a plus for an often-overlooked currency, as well.<\/p>\n<p>I\u2019m talking about the Canadian dollar.<\/p>\n<h2><strong>A Very Happy Birthday<\/strong><\/h2>\n<p>Earlier this year, the Canadian dollar &#8211; otherwise called the &#8220;loonie&#8221; &#8211; turned 25 years old.<\/p>\n<p>And in just the last 10 years, the value of it has soared against the U.S. dollar.<\/p>\n<p>In 2002, you could buy one Canadian dollar for US$0.62. Today, the Canadian dollar is trading at parity with the U.S. dollar.<\/p>\n<p>And like commodities, its run likely isn&#8217;t over yet.<\/p>\n<p>You see, many Americans don&#8217;t even realize it, but Canada is our largest trading partner.<\/p>\n<p>Last year, the United States imported $316 billion worth of goods from Canada, a 14% increase from 2010.<\/p>\n<p>And Canada is the largest exporter of oil and second-largest exporter of gold to the United States, as well.<\/p>\n<p>So if you&#8217;re bullish on the value of these commodities, especially oil prices, the Canadian dollar should be a no-brainer investment, too.<\/p>\n<p>But for Canada, it gets even better.<\/p>\n<p>That&#8217;s because it&#8217;s also in a position to dramatically increase its exports to emerging markets, particularly to countries like China.<\/p>\n<p>This could end up being a huge boost for Canada and it should bolster the Canadian dollar even further against the U.S. dollar.<\/p>\n<p>So where can you get started?<\/p>\n<h2><strong>Three Ways to Play the Loonie<\/strong><\/h2>\n<p>For investors, there are a number of ways to invest in the Canadian dollar.<\/p>\n<p>First, the forex market is the best way to directly expose yourself to a rising Canadian dollar against the U.S. dollar.<\/p>\n<p>Another way could be by picking up shares of an ETF such as <strong>Rydex CurrencyShares Canadian Dollar ETF<\/strong> (NYSE: FXC).<\/p>\n<p>And a third option is going to be available soon, as well.<\/p>\n<p>IShares just announced it&#8217;s going to be launching a group of actively managed currency ETFs soon that would give investors the chance to capitalize on a number of global currency movements, including the Canadian dollar.<\/p>\n<p>No matter which way you invest, if commodity prices are set to head higher, you can bet the Canadian dollar is going to follow suit.<\/p>\n<p>Good Investing,<\/p>\n<p>Mike<\/p>\n<div>\n<a rel=\"nofollow\" target=\"_blank\" href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=kQXUjXk6Ps8:wCw68qpV554:yIl2AUoC8zA\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?d=yIl2AUoC8zA\" border=\"0\" \/><\/a> <a rel=\"nofollow\" target=\"_blank\" href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=kQXUjXk6Ps8:wCw68qpV554:V_sGLiPBpWU\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?i=kQXUjXk6Ps8:wCw68qpV554:V_sGLiPBpWU\" border=\"0\" \/><\/a> <a rel=\"nofollow\" target=\"_blank\" href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=kQXUjXk6Ps8:wCw68qpV554:qj6IDK7rITs\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?d=qj6IDK7rITs\" border=\"0\" \/><\/a> <a rel=\"nofollow\" target=\"_blank\" href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=kQXUjXk6Ps8:wCw68qpV554:gIN9vFwOqvQ\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?i=kQXUjXk6Ps8:wCw68qpV554:gIN9vFwOqvQ\" border=\"0\" \/><\/a> <a rel=\"nofollow\" target=\"_blank\" href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=kQXUjXk6Ps8:wCw68qpV554:F7zBnMyn0Lo\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?i=kQXUjXk6Ps8:wCw68qpV554:F7zBnMyn0Lo\" border=\"0\" \/><\/a>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/InvestmentU\/~4\/kQXUjXk6Ps8\" height=\"1\" width=\"1\" \/><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/SyndicationFeed\/~4\/3LH-wY2ySZs\" height=\"1\" width=\"1\" \/><\/p>\n<p>Article by <a href=\"http:\/\/www.investmentu.com\/\" target=\"_blank\">Investment U<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Article by Investment U There&#8217;s no doubt about it&#8230; Over the last 10 years (and more) the place for investors to be has been the commodities market. Since August 2002: Gold prices skyrocketed over 400%. Silver popped 666%. Oil prices jumped 265%. Meanwhile, the S&amp;P 500 ticked up 50%. And it seems, despite a setback &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.investmacro.com\/forex-news\/2012\/08\/27\/looney-for-the-loonie-canadas-commodity-currency\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Looney for the Loonie: Canada\u2019s Commodity Currency&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-31863","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/31863","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=31863"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/31863\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=31863"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=31863"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=31863"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}