converting $US to $AUD in terms of gold SPOT? need help!!!!!!!!!!

Discussion in 'Currencies' started by unfunkable, Feb 25, 2011.

  1. unfunkable

    unfunkable Active Member

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    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
     
  2. Stedlar

    Stedlar Active Member

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    Nothing else is factored in. You have it exactly.

    Low AUD means High GLD
     
  3. unfunkable

    unfunkable Active Member

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    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 .
     
  4. silverwink

    silverwink New Member

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  5. JulieW

    JulieW Well-Known Member Silver Stacker

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    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.
     

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