Having some trouble getting my head around something Say the exchange rate is : $1AUD buys $1.05US dollars. Gold trades in US dollars right? so for arguments sake, at the moment gold is $US1400 spot Which means Gold is $AUD1333 spot ...so far so right...right? if the dollar drops tomorrow to say $1AUD buys $US0.80Cents, (and assuming gold prices stays the same) does that mean gold spot goes up to 1400/0.8 = $AUD1750 spot? I vaguely remember reading somewhere, something else is factored in..what am i missing
hmm ok thanks so i cant really have my cake and eat it when the dollar is strong the value of my gold is 'low', but i can buy more 'cheaply' when the dollar is weak, my gold is worth 'more' but its more expensive to buy .
A quick link for prices in different currencies : http://www.24hgold.com/english/gold_silver_prices_charts.aspx?money=AUSD
So with AUD heading to $1.20 US, and potential for devaluation of USD (if not replacement by IMF designated currency), PMs will be the only way to hang on to your wealth for the next 10 years or so imho.