RE: RE: RE: RE: RE: RE: RE: RE: SLX or GGCRFI think we're probably talking past each other here. Either that, or the confusion is between the words "denominated" and "quoted".
"If you buy one share of SLX today in $US and 1 share in $CDN and the $US dollar crashes yet the share price stays the same.
Which was the best investment?"
Duh...
If the $US crashes, (I assume you mean relative to the Canadian $) and the price of SLX (denominated in $C) stays the same, then the price of that share of GGCRF will skyrocket. Will it be a better investment? No. Because it will be worth exactly the same as that share of SLX that you bought in Canadian $.
Let me rephrase your hypothetical. Suppose I have $.80 Canadian, and use it to buy one share of SLX. Suppose you have $.80 Canadian and decide instead to convert it to $.82 US and use that to buy 1 share of GGCRF. Now the second part of your hypothetical stays the same - the $US dives, while the price of SLX stays the same. Lets say the exchange rate goes to $2.00 US = $1.00 C. SLX still at $.80 implies GGCRF at $1.60. Did you make a double? Nope. Sell your share, convert back to $C, and you have $.80, just like me. Or if I sell and convert my $.80 C to US funds, I have $1.60, just like you.
"Answer; Converting your cash to $CDN and buying SLX is."
Sorry, no. If you believe that the $US is going to crash, the first part of that sentence makes perfect sense - convert your $US to some other currency. But the second part doesn't follow.
If you think the $US is going to crash, it is obviously a good idea to get your assets out of investments that are denominated in $US (bank accounts, bonds, GIC's, etc.) But there is a huge difference between "denominated" and "quoted". GGRC is quoted in US$. SLX is quoted in $C. But they are exactly the same thing - a very small ownership percentage of certain hard assets mostly found in Mexico. Both have the same advantage over $US denominated investments, in that they won't be affected by a drom in the value of the $US. Neither one has an advantage over the other as an investment, because neither one is denominated in any currency whatsoever.
I'm really surprised how difficult this seems to be.
I'll see if I can find that article I mentioned. It's about precious metals, not stocks, but it really applies here too.