On Thursday, December 4, 2003, at 03:22 PM, Sidd wrote:
> Interesting. You mentioned USD/AU and USD/NZD, but do you have a bottom line figure on NZD/AU? I mean, how much has the price of gold in NZD dropped over the last two years?
Actually, from the data I have, in the same time period I quoted before, it appears the gold rose by just over 2% in terms of NZD... slightly better than the inflation rate of about 1.5%
But Sidd also said this yesterday:
Thus, I have been MUCH better off keeping my money in a NZ bank at an interest rate of 6.5% than I would have been if I had kept it in gold.
OK, so I suppose the net advantage you gained by holding NZD rather than gold over that period was about 4.5% (the bank interest rate of 6.5% minus the gold appreciation of 2%).
Your net advantage of 4.5% in holding NZD was not due to any relative strength of NZD over gold, but was due entirely to the fact that you were lending your money out and collecting interest on it. I admit there aren't many low-risk opportunities to lend gold -- yet. But I suspect one day we'll see high quality bonds denominated in gold, perhaps paying 4.5% or more. :-)
I think the charts you want are at http://gold-price.net
Great site, thanks for the reminder! They don't show NZD yet though.
-- Patrick
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