Contrarian Indicator Alert: Mum & Dad Gold Bugs
The phones are running hot at the Perth Mint.
For an Australian dollar-denominated investor, gold should hold even less than usual appeal. As a major producer, Australia is already long gold. The Australian dollar is positively correlated with the US dollar gold price, so the Australian dollar gold price tends to underperform gains in the world price.
Little known fact: China became the world’s number one gold producer in 2007, according to GFMS Ltd’s annual Gold Survey.
posted on 21 January 2008 by skirchner in Economics, Financial Markets
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