Post by Deleted on Mar 27, 2014 20:33:46 GMT 7
Strong dollar this morning.
As i said b4 ... Things are different now .... The Aussie dollar is a reserve currency. the issue in crimea saw russia take their money out of the USA ... & where do you think their going to put it all ... into A$
& the government & RBA have stopped talking down the A$ aswell ... it seems they have worked out what the rest of us have known for years now.
The more they talk down the A$ the lower it goes in the short term.
The lower the A$ goes, ... The more A$ the rest of the world buys up for the next 10-20-50-100 years.
low A$ = means more buying of A$ , & the more A$ the rest of the world owns, Today' ( China & Russia E.U ) the higher the A$ rises in the future ... next year & the year after, that ect ect.
Also the A$ was at 1.10 against the U.S$ .... & gold was worth $1800U.S ... Gold has since hitting $1800 has fallen to $1200.$1300 U.S ... thats saw the Australian dollar fall to 89c ... When gold was worth $269 an ounce in 2009 the Australia dollar was worth 42c against the U.S dollar. gold went up to $1800 ..... & the Aussie dollar went up to $us 1.10
Gold fell to $1300 an ounce the Australian fell to 89-95 cents against the u.s dollar.
Fact ......
The USA dollar has not been backed by the gold price for years now ... the U.S gold standard is dead.
Furthermore ... in the last 15 years or so, Australia has become the 2nd largest supplier / owner of gold in the world only second to China.
This means as the gold prices rises so will the Australian dollar ... But that will not be the case for the U.S dollar as it is no longer backed by the gold standard & nor does the USA produce anywhere near the amount of gold that Australia & china does.
If the gold price rises as it has been ... the so will the A$
& if Australian interest rates rise also ... So will the A$.
It's a win win.