gold relative to $aus

  1. 130 Posts.
    I was thinking about buying Gold (physical, either bullion at the Perth Mint or 99.99% coins), because I have become convinced that it will rise in $US terms. But then I realise that I can only use $AUS.

    Given that the $AUS will also rise as the $US weakens it seems to me that buying gold in $AUS will not give me the same profit. Australia is a big Gold producer and our currency will rise as the POG rises. See the conundrum?

    So, my question is - Is Gold still a good investment when buying with Australian dollars? Or am I just needlessly confusing myself?

    For the sake of this argument, lets assume that I'm right and the POG does keep rising relative to the $US. I don't want to turn this into a Will it rise? - Will it fall? thread.
 
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