As I have seen debates here about silver by the ounce not being currency & some feel otherwise . My question is since an Exchange rate from country to country is in place and varies from time to time . Can I assume the price of silver has it's set price and the price of silver from country to country is base each country exchange rate to equality.
Yes, it's related to the Exchange rate of the US dollar (USD) Doesn't matter if you own Australian, New Zealand, Malay, or currency from any other country. An ounce of silver is sold in the country you live in the currency used but it's sold at the exchange rate applicable. So for example...when the spot price is quoted (In USD) at any particular time, the quote is calculated to the exchange rate of the end user so that both buyers and sellers can trade silver. Having said that, folk who buy and sell silver will have their own particular premium (Higher or lower over the spot price) on metal products they buy or sell. Some folk like to use the exchange rate to hedge their precious metal. For example, when the exchange rate for the Australian dollar was higher against the US dollar, Australians could buy silver cheaper (or more ounces) but when the Australian dollar falls, just like it has in the past year, Australian folk have to pay more AUD for their silver. As the Australian dollar continues to fall, lets say the silver spot price remains about the same, when I go to sell my silver, the silver is converted back to the USD / AUD exchange rate so that I get more Australian dollars for my silver. Many countries in the world are in the same boat, we generally exchange / convert local currency to USD and vice versa for metal purchases.
But the main thing is Silver reflects a stable value & Countries currencies represent if silver is a ok price by the OZ or a better deal .by the OZ .
This is an interesting silver price loss profit and average chart by silverprice.org Im very optimistic as Australians seems to be behind in profits vs USA, UK, JAPAN and even CANADA. Plenty of room to improve our profits I believe!
I notice when the Australian dollar spiked up around 81UScents from around 76 recently silver went up due to economic uncertainty and US sentiment (including the US hedging against the relative the fall in their dollar. So no win for us if you wanted to get your hands on some cheaper PM.
Im at hilltops waiting to see Silver prices getting near me I have done a fair bit of accumulation as my chunk of digital AUD is now in silver bullion and coins. All I do is now wait and see. I have achieved about 1100 oz and will take it easy on buying from now on.
Nice effort silverbait. If things do take off in a hurry you will sitting sweet while many of us waited too long for 'the low'. If the US tanks or China starts printing money (QE) in the next few years it wont matter where the AUD is at although being a safe haven currency it will no doubt spike again.
