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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (66706)	7/17/2007 5:51:47 PM
From: The Vet	Read Replies (1) \| Respond to of 116555

Gold is priced in euro's. I don't doubt that; I have been buying all my gold recently in AUD, but if you check the spreads, you are paying a small premium to buy in any currency except USD. It's not right and it's not fair but the dealers work out their prices according to the USD quote then they calculate the exchange rates using the currency buy and sell rates not the mid-rate, as I demonstrated by going to the Kitco site, which is a case of a Canadian dealer charging a premium to trade gold in CAD over USD. Net result you are paying to buy gold plus paying to buy the currency if it's not USD. Because it is added to the dealers normal markup and it is not specified most won't notice. My guess is that's how they do it with oil as well, so anyone buying oil in any other currency except the USD that the price is quoted in, is paying a surcharge for the currency exchange.