17 Sep 09
2 edits
Originally posted by Phlabibitgold is a US$-denominated commodity, so if you're buying and selling in US$, all you need to think about is whether the price of gold will go up or down, and your transaction costs. buying and selling in other currencies, you have to think about those things, plus how your currency will fluctuate against the $US between buying and selling. here, for example, the Aussie dollar has been appreciating against the $US recently, like many currencies, and this is largely cancelling out the effect of the rising gold price, so that the $A price is relatively steady recently at about $A1140 or thereabouts (currently, A$1.00 = about US$0.87).
Why not? Does the price not fluctuate in America as well? Or are you talking about foreign currency fluctuations vs. US dollar vs. price of gold?
17 Sep 09
Indeed Blackamp! Good sound advice. Here in Canada we have the same situation,our dollar has risen against the greenback and sits at market .94 right now, which yields .92 when purchasing greenbacks. I have expectations for Gold for the near future as well for our dollar, analysts are touting par for the Cdn dollar by christmas! 🙂
17 Sep 09
Originally posted by BlackampThat's what I figured.
gold is a US$-denominated commodity, so if you're buying and selling in US$, all you need to think about is whether the price of gold will go up or down, and your transaction costs. buying and selling in other currencies, you have to think about those things, plus how your currency will fluctuate against the $US between buying and selling. here, for example ...[text shortened]... relatively steady recently at about $A1140 or thereabouts (currently, A$1.00 = about US$0.87).
In short... perhaps the ounce of gold isn't really worth $1000, but it takes $1000 to now buy that ounce of gold.
P-
18 Sep 09
Originally posted by Phlabibitthe relationship between gold and money is complex, especially when it comes to the $US and other 'fiat' currencies. back in the day, the greenback's value was backed by the US gold reserve. that changed under Nixon in 1971. so, maybe the question is really, is the US$1000 really worth the ounce of gold?
That's what I figured.
In short... perhaps the ounce of gold isn't really worth $1000, but it takes $1000 to now buy that ounce of gold.
P-
18 Sep 09
Originally posted by BlackampThe US dollar use to be "the $hit" now its just a piece of $hit.
the relationship between gold and money is complex, especially when it comes to the $US and other 'fiat' currencies. back in the day, the greenback's value was backed by the US gold reserve. that changed under Nixon in 1971. so, maybe the question is really, is the US$1000 really worth the ounce of gold?
19 Sep 09
Originally posted by glenn64As a chemist I would say you are right that especially the slowness of reacting with nearly anything else is a intersting property in gold. This is also the reason for it's uses. It's highly resistant to corrosion, thus as jewellry it keeps its colour, surface, luster..,. as a finacial investment it does not alter (rust like steel...). As a medical implant, the body does not decompose it. As electrical conductor contacts don't suffer...
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Gold is too expensive to use by chance. Instead it is used deliberately and only when less expensive substitutes can not be identified. As a result, once a use is found for gold it is rarely abandoned for another metal. This means that the number of uses for gold have been increasing over time.
Most of the ways that gold is used today have been de ...[text shortened]... nd importance of gold to increase steadily over time. It is truly a metal of the future
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But it's not ture that it is not replaced a lot of reserch is going into replacing the expensive gold.
In dentsitry the trend is to use ceramics, which would also be a good replacement in other medical applications, since gold has to be alloyed to show the necessary strength which taints the corrosion resistance...
And Platinum is as catalytic active noble metal much more sought after.
And I also agree that the gold price is not an absolute as long as it's price is noted in US$, which is fluctuating wildly after the decoupling of the value from the gold 😉
19 Sep 09
Originally posted by glenn64the Aussie dollar is expected to reach about US$0.90 fairly soon. toward the end of last year. it was up around U$0.96 from memory, and people were starting to wonder if it would achieve parity.
Indeed Blackamp! Good sound advice. Here in Canada we have the same situation,our dollar has risen against the greenback and sits at market .94 right now, which yields .92 when purchasing greenbacks. I have expectations for Gold for the near future as well for our dollar, analysts are touting par for the Cdn dollar by christmas! 🙂