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 Replies: 7 / Views: 1,271 |
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Valued Member
United States
255 Posts |
Question: after converting for differences in currencies, is spot about the same price per ounce around the world? If I tried to buy 5 oz of silver in Australia and I had converted my money to their currency, would it be equivalent to approx. $30 /ounce equivalent cash in their currency?
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Pillar of the Community
Canada
1723 Posts |
That's a good question, not sure. Maybe spot prices are but not the actual purchase price? Whoever is doing the converting would get a cut? They would charge you a small fee. Its like right now.... The CAD is worth more than the USD. I make a purchase on ebay for 45 USD. In CAD it is around $44.56 or whatever (Just using numbers but this happened the other day, just don't wanna go through the exact records right now) After paypal converts my CAD into USD I end up paying over the $45.  Edited by samsnate
12/27/2012 12:16 am
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Bedrock of the Community
13014 Posts |
Im pretty sure the price of the PM is consistent everywhere, but would not be surprised is like sams said theres a fee to convert the money. Its probably possible that some countries dont value it as much if at all but I dont think that applies to first world countries or countries that trade on the market. It could be cheap in Somalia though if you trade some bullets  |
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Bedrock of the Community
Australia
21788 Posts |
The LME quotes prices in any currency you want, but since the USD is still the most traded reserve currency, that is the currency that is nominally quoted first. All other markets around the World quote in USD as well.
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Pillar of the Community
Canada
834 Posts |
This works only to you're advantage if you
a) have the countries currency on hand
b) live close to that country
for example I have CDN and USD on hand at all times. Silver spot is currently at
29.98 USD
29.73 CDN
So generally I do all my purchasing in Canada in CDN dollars. Now items such as eagles have a higher premium here so I buy those through Goldmart in USD,
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New Member
Canada
37 Posts |
The simple answer is yes, as arbitrage pricing theory would insist that there are no arbitrage profits to be made so spot would have to be identical around the world.
i.e. if I could buy gold cheaper in australian dollars than US dollars, myself (hypothetically), and other savvy traders, would begin to trade (short US dollar gold and go long AUS gold) in such volumes that we would drive the price of cheap australian gold all the way up to the price we could buy it in the states.
Now in the real world there will be pockets of opportunity, but practically speaking there is no reliable (or risk-free) way to find pricing discrepancies on something as liquid as precious metals.
As well, websites such as kitco have tables of PM prices for a multitude of international currencies which you can view.
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Pillar of the Community
United States
3789 Posts |
well if a site is selling you 1 oz of silver and its price in Aussie then it would be roughly today 1.04 times the price of silver they were qouting you.
BTW gold can be priced out in euros, yen etc.
theres very little advantage tho in what you are trying to do. to full make use of that you are talking having an forex account that would allow you to span all foreign currencies.
What would be great is taking your euros OR British Pound and covert to dollars and buy here, now THATS how you could do better. Pounds is almost 1.58ish compared to our dollar.
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Pillar of the Community
Mexico
1304 Posts |
Hey folks,
From a guy that is constantly aware of the foreign market, I can speak from experience that what swrbxxx said is spot on.
Living in Mexico the exchange rate can fluctuate wilding from time to time. Then, the silver price can also fluctuate at the same time...but there is lag. It can take half a day for one price to update while the other is instantaneous.
I don't try to ride the market and purchase during those sweet spots. Just don't have the time to go out and snap up the bullion. But, if a fella wanted to, he could make some pretty nice buys.
For the most part, I can support most of everything that's said....but swrbxxx really nailed it. You have to have the cash (or electronic) in that currency when you want to make the move. That said, I think Banco Azteca would be the best bet for that since they offer electronic purchasing of silver and you can later "cash out" or "silver out" in this case. (You had better be able to read Spanish! and living near the border would be helpful if you are in the US.) Once upon a time I even tracked their lag time, but haven't given it much attention in a while.
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Replies: 7 / Views: 1,271 |
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Posted 12/27/2012 02:53 am
