I have been attempting to put together a chart of the $AUD VS $AUD Silver Spot Price for the last 12 month period I believe the gap between the $AUD (vs $US) and the AUD Silver Spot price is trading to far apart. Not that I am an expert on charts and this is a pretty crude attempt of putting two charts over each other by me, but it just looks out of whack to me? What does this mean?,I'm not sure but the RBA is reporting in the recent news reports that the $AUD is getting to high, but with a new possible round of stimulus from the US in September and the $AUD to go even higher if the US printing machines fire up again. What effects will this have on the $AUD silver Spot Price. Surely it must go up from the recent ranges, Thoughts any one? Regards Dags Source:
What the hell are those ziggly red and yellow lines? Look don't worry about the AUD and Silver. The AUD is currently bullish, and Silver is in the doldrums. Seen it before in other currencies. Silver will win out because it is real and because it has previously. The AUD is not in the same class as silver
The AFR had an interesting article yeserday about this... Historically, the AUD was linked to commodity prices and fluctuated in line with changes to prices of the commodities being exported. So, what we are seeing is the carry trade, where hot, speculative money that is being printed up by foreign central banks is pouring into the AUD from around the world. And regardless of what Wayne Swan may say about this being reflective of strong economic management by the federal Australian government, this could all change in a heartbeat. That is, its a bubble induced by international central banksters printing money. "Make hay while the sun shines," because when the AUD reverts to its mean value against international currencies it will only be your precious metals and international investments bought with today's AUD that will increase in value tomorrow. Your cash and AUD denominated assets will not. Of course that is only my opinion in the context of a discussion and not any form of investment advice. Everyone needs to be responsible for their own decisions.
The RBA wants it back to 60-80% USD and are thinking about printing money and investing in foreign currencies to do it.... Ok rationale for that money... Assumption: All fiat currencies are loosing value Australia a relatively strong currency want to dilute its value and buy a declining 'asset' ie the other falling currencies... Equation %age of dillution(through loan from RBA) x %age of foreign currency decline = Total real %age loss + interest on principal per annum This is the perfect way to destroy the Australian currency - you couldnt do it a better way. It will lead to inflation of prices for consumer, cheaper cost of product exported, more work available but less value of wages (in AUD) available IE wealth transfer by deliberate dilution of wealth heald in currency form. We are being prepared for slavery.
I've trying to decipher the same thing....... still can't figure out how a chart can look like this? Must be price manipulation
Well from the Macquaire Bank article, the average since floating is A$1=US$0.85, so there is a potential 19% loss of value in a reversion back to the mean. However, if we see some over shoot in that process, then we could go the way of 2008 and be down to A$1 = US$0.65, which is about a 38% loss in value. Personally, I don't know how effective Mr Stevens and his RBA buddies can be in printing and selling AUD to the world and what will happen if they try, beside from increasing the level of government debt by loaning that money into existence in the first place. But just like the refugee issue, by taking away the incentives for the unwelcome immigration of foreign capital, be that higher interest rates or free welfare, they could very effectively dissuade the uninvited guests from attending the Australian free money party. Here's another chart on the decoupling of the AUD from resources for the OP. Source: http://www.macrobusiness.com.au/2012/07/australian-dollar-decouples-from-iron-ore/
