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#1 2010-03-08 18:43:09
- kinetik30
- Member
- From: Sydney
- Registered: 2010-01-18
- Posts: 28
if aus dollar money go down, will it affect silver price?
AUD 1 dollar = 0.91 USD
silver 1 oz = 17.45 USD
so if Aud 1 dollar buying only 0.75 USD in the future
will that mean silver becoming 1oz = AUD 23.26 ???? or will there be any fluctuation with silver price itself?
what do you guys think?
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#2 2010-03-08 19:28:56
- goldpelican
- Administrator
- From: Melbourne, Australia
- Registered: 2009-06-30
- Posts: 3451
Re: if aus dollar money go down, will it affect silver price?
Depends if the wider economic conditions that led to the Australian dollar falling in value have had much effect on silver prices, but in general, the silver price in AUD is directly converted from USD. So if silver is $18 USD and the dollar drops to 0.75 USD, then silver in AUD could be $24.
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#3 2010-03-08 20:10:09
Re: if aus dollar money go down, will it affect silver price?
Which essentially means as the US dollar drops through the floor, as long as the AUD holds steady, we should be able to snap up silver pretty cheaply in the short term at least.
Party time for Aus investors.
Who is John Galt?
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#4 2010-03-08 23:42:46
- Peter
- Silver Stacker
- From: sydney
- Registered: 2009-07-28
- Posts: 140
Re: if aus dollar money go down, will it affect silver price?
I think that the Aussi dollar will fall if things don't look good globally,because our products(iron ore,etc) won't be needed.
If things don't look good globally, I think gold price(US) and silver will fall also,at least initally.(As people sell gold to raise cash,to back their failing investments)
And I think AUD would fall proportionally more than Silver(in USD)
So Silver price should rise in AUD.
Peter
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#5 2010-03-09 20:40:53
- staffstuff
- Member
- From: Toowoomba
- Registered: 2010-02-24
- Posts: 72
Re: if aus dollar money go down, will it affect silver price?
In the current uncertain economic times,we just might be less worse off in Aust than a lot of other countries.
If The Euro weakens because of Greece and the P.I.G.S the $US dollar should rise in the short term as investors flee uncertainty. The US Gov doesn't want this as they need a lower dollar to boost exports and reduce (inflate away) their enormous foreign debt. When the weak $US meets domestic inflation, caused by debt and the increasing of money supply, Americans will turn to PM and foreign currencies to preserve their remaining wealth. The foreign currencies they will want are Swiss francs, $Sing and $Aust. This will cause these currencies to further rise against the $US.
This will be a PM buy opportunity for holders of these currencies.
What I don't understand is, if confidence in the $US is lost internationally, what unit of wealth will be used in place of the $US to value commodities?
Has anybody got a suggestion?
thanks
SS
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#6 2010-03-09 21:12:28
- Big A.D.
- Silver Stacker +
- Registered: 2009-10-30
- Posts: 557
Re: if aus dollar money go down, will it affect silver price?
staffstuff wrote:
What I don't understand is, if confidence in the $US is lost internationally, what unit of wealth will be used in place of the $US to value commodities?
Has anybody got a suggestion?
XDR perhaps? (IMF Special Drawing Rights)
One Special Drawing Right is the sum of 0.6320 US Dollars, 0.4100 euro, 18.4 Japanese yen and 0.0903 pound sterling so if the Euro goes up against the USD, the value of an XDR unit will be partially lifted by the rising Euro but partially sunk by the falling USD (and since the USD makes up 44% of the XDR to the Euro's 34%, you'd be better off holding XDRs than USDs, but not as much as if you were holding Euros so it makes a nice middle ground).
If you look at this link: http://www.imf.org/external/np/fin/data/rms_sdrv.aspx
...and look at the last column, the sum of the rises and falls of the other currencies against the USD is a lot smaller than the rise or fall of any individual currency, so the XDR is basically pretty flat against everything. Flatness makes a pretty good measuring device.
If anyone feels like going through Xe.com's historical data and doing a compare and contrast with some currencies (and PMs) against the XDR, I'm sure it would look pretty interesting.
I am the Leafy Sea Dragon.
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#7 2010-03-09 22:20:34
- Peter
- Silver Stacker
- From: sydney
- Registered: 2009-07-28
- Posts: 140
Re: if aus dollar money go down, will it affect silver price?
Chinese yuan?
Peter
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