How does the Rand/dollar exchange rate affect the price of gold?
Posted May 18th, 2009 by admin 1 Comment »
Tony asked:
I’m very new to investing but I’d like to start and was looking at buying krugerrands. At the moment though the price of gold is sky-high and may rise or fall… I was just wondering if this has anything to do with the rand/ dollar exchange rate as gold is bought in dollars. And since the 2010 world cup soccer is held in South Africa next year, I’m guessing the rand will become stronger. (Am I wrong?) Should I invest now, or should I rather wait until the rand is stronger?
I’m very new to investing but I’d like to start and was looking at buying krugerrands. At the moment though the price of gold is sky-high and may rise or fall… I was just wondering if this has anything to do with the rand/ dollar exchange rate as gold is bought in dollars. And since the 2010 world cup soccer is held in South Africa next year, I’m guessing the rand will become stronger. (Am I wrong?) Should I invest now, or should I rather wait until the rand is stronger?