The Gold I hold in Australia was purchased in AUD and no doubt when I sell it will be to convert to AUD it could be seen as a currency play but not by me generally.
Similarly, the Gold I hold in the UK was purchased in that currency and if I sell it will convert to GBP. I buy Britannia coins in the UK and 1 Kg bars in Australia as the UK coins are also CGT free.
Please note I only now ever buy physical Gold and not paper contracts of any kind although I was gamer early on around 2002 to 2006 to hold GOLD on the ASX using a 50% margin account but sold out and switched to half the amount in physical. Had I waited to do this until 2011 I could claim true smart status; however, I was happy with my decision at the time.
I dare say people around the World will still run to US $ as they will perceive this as a safety play and I expect our dollar and the UK pound to be lower against the US dollar in the medium term.
Watching the antics down in Canberra with the best politician’s money can buy and the boofheads in Westminster only helps confirm my thinking on the AUD dollar and the UK pound.
