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Politics : Dutch Central Bank Sale Announcement Imminent?
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To: Gary H who wrote (19105)9/22/2003 9:01:21 PM
From: sea_urchin  Read Replies (2) of 81164
 
Gary > So far so good

All depends on whether the CAD appreciates more than the POG since both are hedges against the USD.

As you know, most of the so-called buying of gold is for speculation against the US dollar and not for any particular use which the metal has. The problem is how does anyone decide which hedge is the best? If CAD is preferred to gold then the gold price in Canada will fall even though it may go up in USD.

This has been the problem in South Africa where the rand has been appreciating against the dollar while the gold price in dollars has been going up. Hence the profits of the gold mines have gone to Hell because the SA mines earn in rands and not in dollars.
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