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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (57287)	8/14/2000 1:08:09 AM
From: The Vet	Read Replies (1) \| Respond to of 116954

Ron the PPP (or fair value) of any nations currency is determined by the number of US dollars required in that country to purchase a representative basket of goods and services costing $1 US in the US. As at 30 June the SA rand was 47% undervalued, the Australian dollar 27% undervalued the Canadian dollar 26% undervalued and the yen 18% overvalued. In other words if you spend $1 AUD in Australia you will get 27% more for your money that you would spending the equivalent (58 cents US at the present exchange rate) in the US. Source - Bloomberg, RBC Dominion Securities, Consensus Economics Inc. Your example of the rand was classic disinformation - absolute numbers are meaningless - There are over 100 yen to the dollar - does than make the yen 100 times weaker - or the UK pound stronger than the USD... Therefore your quote is completely wrong. << So that tells me that one must have 7 Rands in order to purchase the same amount that can be purchased for one US dollar.>> In fact you only need 4 Rands to buy the same amount (in SA) that can be purchased for one US dollar (in the US) but you would have to pay 7 rands to buy each US dollar (and that buys you 47% less than if you spent the Rands directly). So which is really the strongest currency?