Purchasing gold in foreign currnecy

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Joined: Feb 22 2012
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Purchasing gold in foreign currnecy

Hi all,

I'm new to the site and have a question in respect of buying gold.

As I'm in Australia, we have to consider the movement between the AUD and USD when trading in metals. Does anyone have any experience or guidance in respect of this?

My anticipation is that the USD will lose value against the AUD in future, meaning by gold holdings would lose value even whilst the price of gold increases (depending on the movements of course).

But how to protect against this? I know the obvious answer is currency hedge - but what does that mean in practical terms?

What time frame should one be looking at? 

In the event of a devaluation of the USD, I think that a corresponding devaluation of the AUD would also take place - but I could be well wrong on this.

Any guidance would be appreciated.


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