Full Disclosure: I own stock in this company (PAAS). This is not investment advice, and I am not a financial professional. You should consult a licensed investment professional before investing any money in anything.
Pan American Silver Shifts Assets to Canadian Dollars
- Pan American Silver Corp., the world’s fourth-largest silver producer, said it’s shifting its currency holdings into Canadian dollars, betting the U.S. dollar may fall further.
- The world’s reserve currencies are struggling to maintain their value amid “ridiculous” debt levels, Chief Executive Officer Geoffrey Burns said today on a conference call with analysts. Gold and silver look “extremely appealing” as alternative long-term investments, he said.
- “We diversified some of our currency holdings into Canadian dollars away from U.S. dollars to provide more stability in the event we do see continued weakness in the U.S. dollar,” Burns said. “It’s not just the U.S. dollar — the euro, the Japanese yen are going to have extreme difficulty hanging onto their long-term values as a commodity of trade.”
It makes no sense to dig money out of the ground, only to have that money taxed away from you through inflation by the Federal Reserve Bank.
Full disclosure: I also own a Canadian Dollar ETF, Ticker FXC, as a hedge against Mr. Bernanke the Money-Printer. This is not investment advice, and I am not a financial professional. You should consult a licensed investment professional before investing any money in anything.