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Huge opportunity for Australian Gold Investors if AUD falls against USD

In April 2020, GoldNews.com.au came under new management, articles published before this time, such as the below, may not reflect the views or opinions of the current GoldNews.com.au team.

Gold has had a very turbulent introduction to the 2015 calendar year so far, with gold prices falling heavily in US dollars continually. There is however still good news for Australian investors, the Australian dollar has fallen almost equally with the US dollar, meaning that losses in gold value have barely impacted local reserve prices.

Bullion is still a very good investment for Australians, while most of the media focuses on the US dollar losses, there is one good thing to keep in mind. As the Australian Dollar falls, the value of gold gains. Many experts are considering the Australian dollar to end up close to its pre global financial crisis point of around 0.50 to 0.55 US cents per AUD.

It doesn’t take an expert to realise that this is a huge opportunity for Australian investors. If the AUD was to fall back to this rate, the value of gold being based in USD means that we could see gold back into the 1750 to $2000 AUD mark. While technically both gold and the AUD loose value, the pegging of the USD to gold could bring Australian investors a massive pay day.

We are very lucky in a way to be in this situation, our exports are slowing, more of our competitive markets are picking up overseas rather than people investing locally, and Australian start ups are at an all time high compared to established business making money. Usually when start-up’s increase, it’s due to little opportunity in the current economy, this is indeed what is occurring at this point in time.

So, with our share prices for established companies falling, and the majority of local share investment going towards high risk start up’s, now is the ideal time to make a much lower risk investment in Gold or Silver Bullion.

Gold is highly recommended as the starting point, but only invest if you can afford to buy around 1kg of gold at a time. The premium on 1kg gold bars is extremely minimal, meaning you will get the 1kg of gold at almost identical rates to the current world gold price, maybe with a $50 or $100 premium on top.

This lowers you entry risks, and should the AUD find some momentum and actually regain ground to the US dollar, there is very little losses to incur. However, if the markets continue the way they are predicted, and the AUD collaspes against the USD, Australia will be the only country who will see such a huge gain in gold value from this outcome.

It doesn’t make sense for overseas investors to buy gold at this point in time, with the EURO and USD being strong, and even smaller currencies like the Canadian Dollar not likely to experience any serious issues with the American recovery period. The only people to gain from Gold in the near future is going to be Australians, and the value is only a gain in Australian Dollars. So for us, being the home of the Australian dollar, we can leverage our investments of gold to get us some easy Australian Dollars as a bonus from our failing economy.

My advice today, forget start up’s as your sole investment choice, and buy yourself 1kg or more of Gold Bullion, Silver is still a bit of a risk, but Gold’s value is very predictable, should the worst occur locally, you will make some good money off the Gold price increase in terms of conversion from USD value to Australian Dollars.

If the AUD does fall to 0.50 or 0.55 US cents, gold will be the best investment pay out to Australians over all other local and foreign investments.

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