When considering where to invest their money, Americans should take a close look at their northern neighbor. Canadian financial markets, due primarily to the country’s strict banking regulations, rich oil sands, and steady economy, provide prime territory for investors. This article will describe the Canadian financial market, and explain why this market is a good area to invest in currently.
Any financier investing in Canada should consider investing in Money Market Funds. These funds invest in short-term securities such as certificates of deposits and treasury bills. In essence, these funds are short-term loans used by the Canadian government and Canadian businesses. This can be a good investment option if you expect that the money may need to be accessed in the near future. In addition, these funds typically pay one or two percentage points higher than traditional savings accounts.
Another reason to consider investing in Canada is oil. Alberta’s Oil Sands are the second largest source of oil in the world, trailing only behind Saudi Arabia. Every year, new projects are being added and the expected output is projected to reach three million barrels a day by 2018. Also, great strides have been made to limit environmental damage in this oil producing venture. It is estimated that continued drilling in Alberta will be profitable as long as oil prices do not fall below $30 per barrel.
Canada also has an abundance of gold. People have always invested in gold during turbulent economic times, and Canada is one of the top countries in the world for Gold Production. Many Canadian gold mines were closed during the 1970s but in recent years have come back online as world prices soar and production has once again started to increase.
You may want to consult with a Canadian broker before investing in gold. When considering a broker you should only work with a firm that has an excellent track record. Among the largest players in Canada are TD Waterhouse, Raymond James and Sun Life Financial. Ultimately, you want to make sure that the investor you pick has your interests aligned with theirs. Question what their commissions are and where they are coming from. Ask if they are compensated for pushing any specific vehicles and what their financial incentives are. This information is important as it will allow you to understand how biased – or independent – their advice is.
Investors should seriously consider Canada when investing their assets. Canadian money market funds offer a steady and short-term investment vehicle. Canada’s oil production continues to increase, and new technology will only enhance this production in the future. With the United States still consuming/purchasing large quantities of oil, this should prove to be a sound investment for years to come. Gold production, which had in previous years been on the decrease in Canada, is again on the rise, and should also be considered when evaluating different investment opportunities as well.Tags: Gold Production, investing, money, oil sands, Raymond James