Mish's Global Economic Trend Analysis Message Board

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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: mishedlo who wrote (66680)	7/17/2007 2:29:04 PM
From: The Vet	Read Replies (1) of 116555

mish, your comment "anyone in London can walk into a gold dealer and buy gold in the British Pound or Euros even though gold is priced in dollars" is true of course but it's not always the best way to buy and sell. In fact many gold dealers quote their buy and sell prices using the USD but on conversion to other currencies they add the spread of the currency exchange to their normal transaction spread. This makes the transaction in any currency other than USD far more expensive for the buyer by few points either way. Just check the Canadian gold dealer Kitco. His prices are quoted in USD and he will accept CAD (his native currency I presume) but only at the buy and sell rates on the forex market. That adds quite a disincentive to purchase in anything other than USD. Kitco USD sell prices online.kitco.com Then click on CAD and see the rate offered. Kitco USD Buy prices. online.kitco.com And then check the CAD rate.. There is always a spread between the buy and sell conversion for any currency except USD. Most other bullion dealers in other currencies and other countries do the same thing.

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