Canadian Dollar to Spike in 2021, but Speculators see a Crash Coming

Written By Karl Fluri, Posted on December 19, 2020

It’s no secret that Covid has harmed the world economy in ways we haven’t seen since the 2008 crisis. The big difference this time around? Government deficit spending has largely propped up the economy for now. 

Although, with the majority of spending going to big corporate donors, and useless government programs, not to mention the pay raises our politicians have given themselves, these measures will only have a temporary impact. 

And if you expected that the Trudeau government would slow down this type of spending in 2021, think again. He will only dig us in deeper. 

The one thing saving the Canadian economy for now? A comparatively weak US dollar. 

The pandemic has affected our neighbours to the South, and their economy, far more than it has affected us. The American dollar is expected to dip even lower in 2021, compared to the Euro and other foreign currencies, causing greater investment to flow into Canada and our comparative dollar value to rise to levels we haven’t seen since before Trudeau took office.

As the US rebounds, and Canada starts to experience the economic impacts of the astronomical debt-to-gdp ratio we are currently racking up, on top of the housing market crash experts are predicting, not to mention the lack of local businesses, we will see a major dip in the Canadian market.

For nearly half of all businesses in Saskatchewan these shutdowns have become permanent, and those numbers are only set to grow across the country as the true effects of the economy continue to reveal themselves. Hundreds of thousands of Canadian businesses have had to close their doors, not expecting to reopen. 


In many communities throughout Canada large multinational corporations are still the only ones allowed to operate. Not only is this the largest upward transfer of wealth in history, but we’re also seeing a funnelling of wealth overseas. Speculators say that it’s only a matter of time before this perfect storm will cripple our economy.

Canadians should take advantage of this opportunity, which many may not see again in their lifetimes, to ditch the Canadian dollar at a high water mark for something with a far more stable and reliable value.

Precious metals such as gold, silver, platinum, and others have trends that make them extremely attractive during times of economic uncertainty due to increased stability. Gold, for example, tends to close up about 80% of the time no matter the external factors. 

The pandemic caused the price of gold and other precious metals to reach record highs, but with the vaccine rollout starting we will see a plateau and perhaps even a small dip in early 2021. Which is going to be perfect timing for Canadians to invest.


We are expecting to be dealing with the effects of this recession for possibly a decade or more, and following 2021 Canada is set to be hit as hard, if not harder, than the US economically. The edge our dollar currently has over the US dollar will grow in early 2021 especially but, following this anomalous bolstering of our economy, the relative value is expected to return closer to pre-pandemic levels.

The value of precious metals, on the other hand, is only expected to rise in the coming future; this investment will be one of the few able to keep your portfolio earning throughout the coming recession. Not to mention that, when another crisis hits, you’ll likely see a spike; which will only serve to keep you secure, and allow you to make even more advantageous investments at that time.

Karl Fluri

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