On the weekend when silver was around $49US the price of silver was around $47. Now it is $48US but only around $43AUD. If the AUD keeps going higher against the USD do you think we will see a no big gain in AUD silver price for awhile?
The Au price wont stay that high for long... when it comes crashing back down to under parity, you will feel better. Hold out buying if you want.. but by doing so it adds another factor into the mix - exchange rates..not just the price of silver.
If AUD comes down, the $45 AU oz of silver you paid for would now be worth MORE than $45 AU...? For example an ASE would cost 50 USD and 46 AUD (example only!) now that we're at 1.09. If and when we drop below parity and assuming the value of the ASE does not change, it will still be 50 USD and now 50 AUD. You would've lost out on 4 dollars?
I'm hoping the australian dollar will continue to climb, while it's doing that the average ignoramus will continue thinking the economy is chugging along fine. This helps to keep mainstream media attention away from gold and silver, reducing domestic demand. As soon as our $ goes for a face plant, the media and the ignoramuses will start to do the sums and the apparent rise in spot prices for PM's will stand out like the proverbial "morning glory". The $Aus is in a conversation bubble, it's the darling of the financial illiterati at parties and social events and it's doing a swell job of distracting attention from the decline of fiat.
I doubt australian investors will be the catalyst in the silver story, but it is a very small market so every country counts!
No, I'm not saying Aus investors will be, what I'm saying is that we are not witnessing the huge demand for silver and gold in this country as say in the states because their dollar and their government are stuffed. We're lucky, only our gov't is stuffed.
I am hoping the Aussie dollar would go up higher at a rate faster than the price of gold and silver too. Wouldnt mind buy a bit more silver if it drops below $40 again Maybe this is a mini AUD bubble?
Remember when you are playing Silver and Gold you are playing a currency. The AUD, CHF, CAD and Gold are currently considered strong currencies. That's one of the reasons gold has been such a lack lustre investment for in AUD terms for the last 8 months. All the safe havens have tended to go up relative to the USD. Silver is more speculative, so its rise has outpaced that of the AUD. But a good portion of interest in silver is still based on hedging the failing USD. At the moment a 1 cent drop in the AUD increases silver by almost 50 cents, but the same goes in reverse. I think the Aussie is going to be strong against the USD for some time to come. Don't be surprised if onee day silver is $500 USD, but only $100 AUD.
The high AUD is an artefact of Chinese economic hegemony and the current bullish view for Asian growth. When this changes, and it will, the AUD will plummet, and your PM value will soar. You should be buying with both hands.
Definitely In the meantime, most people are saying "I'm going to shop online and order in that new iPod accessory from the US!" I have had to hold back from saying "If you're going to buy US denominated goods, how about silver?" >_> I did mention it once.... Them: "Oh, is it a good investment?" Me: "Sure is, and IF and when the AUD falls, you may get a nice return" Them: "hmmmm, I'll think about it" *15 minutes later* Them: "I get paid tomorrow so I'll finally be able to buy new speakers for my car, they are going cheap on ebay" @_@
Not so much, although that probably lifts us to 0.90 from 0.75. No, the big increase of late is because Australia is only printing it's normal 3% , while the US has tripled it's monetary supply. Give away three times as many shares in the same pile of dirt and the value of each share drops.
The AUD is in a bubble. Everyone - literally - is talking about it, yet our major trading partners are tanking. The AUD is no different to any other sinking fiat currency, probably even worse than some, but is having a rally with all the hot money flowing into it at the moment giving Australians a temporary sense of affluence with stronger purchasing power than other countries. Want to save this purchasing power for a rainy day? Buy gold and silver now, before the AUD bubble pops.
I back HiHo with 3 words BUY BUY BUY .... ppl, can't you see that our dollar being stronger against the US dollar atm it only makes an "window of opportunity" to leverage your buys ? I want to see you buy the same quantity if and when our dollar goes back to the .80 or .90's mark..... non brainer here IMHO cheers
Think its like money in the bank,gold.With a special bonus. When the AUD crash's ,you can sell the gold for a lot more Aussi dollars.
Sure, it can lose value. But when you say the AUD is no different than other sinking fiat currencies, in that you are incorrect. If it was different, it would also be sinking. Since it isn't, something is necessarily different. And the difference is not simply that it 'is in a bubble'. Trade is not the only thing that drives currency value. In fact it is not necessarily the major contributor. The big thing that drives currency value is the movement of capital. What is happening to drive up the AUD? Capital is moving here. This is not a short term, or false process such as would be associated with a bubble. It is a recognition of the underlying strength of the AUD, and the underlying weakness of some of the major currencies. Just some of the reasons capital is moving here: - relatively good return on investment - open capital flows, in and out - consistent and solid legal system - consistent, no-nonsense operation of the Reserve Bank. 3% increase in money supply a year, every year. Temporary fluctuations to provide liquidity as needed, consistently pulled back out when not. - ongoing positioning by both government and the Reserve Bank as a capital friendly currency. None of these are bubble forming. Yes, we are up against the USD. That is because they are down. All you are seeing is the slow deflation of the bubble the USD has been in for 30 years.
The rich and investment companies gamble.One of the thing they gamble on is currencies and the Aud is one of the favourites to gamble on. When its going up people will buy,when it's going down people will sell. Its fickle ,this type of gambling,and can probably do much damage to an economy.Could probably destroy it. It should be illegal but the rich make the laws. At the moment , stockmarkets rising unreasonably because of QE, plenty of unreal money around to gamble. When this illusion "poof" Aud will go down bad. And you can cash your gold in good.
