# GLD - ETF, the ultimate CDN recession Hedge?



## davext (Apr 11, 2010)

Hi All,

During the last recession, most of the stocks/equities went down severely. However, looking at the charts, I've noticed that the GLD ETF went down about 30% just like everything else. REALLY BAD. 

However, if you are stuck with US dollars like me because I get paid in US dollars and cannot time the market perfectly, I find GLD to be the ultimate hedge. While GLD went down 30%, the US dollar went up about 30% against the CDN dollar as well. That balances out to relatively small net gain/loss. 

When the US dollar goes down, gold prices will go up too since it's priced in US dollars. 


As an added bonus, GLD will go up when the price of Gold goes up due to other demand factors unrelated to currency. 

What do you think?

The risk is the demand for gold going down.


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## Argonaut (Dec 7, 2010)

Owning GLD with your USD is the same as buying gold coins with your CAD, simply speaking. But yeah, it's a good bet if you get paid in USD and don't want to get screwed by exchange rates. Some local gold dealers may accept USD without exchanging, though. A big positive about GLD is that it has one of the most active options markets in the world, something I've taken advantage of five times.


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