The South African Rand was the world's second-highest indicator in 2009. The growth of nuts was 28% against the US dollar. In addition, the South African Rand paid 7% of interest income. In the foreign currency account of the foreign exchange it is only 700% on interest rates only.
King of Bling
South Africa is the king of Bling. It is one of the world's leading exporters of gold, diamonds, platinum, palladium, silver, ferrous chromium, magnesium and precious stones.
Blank prices are rising, as is South African prices. In 2009, when platinum and gold rose, the Australian dollar (AUD) grew along with them. Like South Africa, Australia is a leading gold miner.
The special performances of gold, the South African Rand and the Australian dollar were no accident. South Africa holds the world's largest gold reserves, accounting for 40% of the world's total. Australia is currently the world's leading exporter of gold. As a result, the price of rand and AUD moves along with gold prices. One study found that the 10-year price ratio exceeds 80%
Gold is better to possess
When it comes to gold prices, I prefer to have the South African rand and the Australian dollar against gold, for the following reasons:
Calculated interest income. The benefit of preferential interest rates is a beautiful thing. You pay $ 1000 to your forex broker. With this deposit you get a standard position of $ 100,000. The South African Rand pays 7% interest on a $ 100,000 currency position. If the rate remains unchanged throughout the year, you can earn up to $ 7,000 in interest on your initial $ 1,000 investment.
Mutual rating: This can do good or bad. In 2009, when the South African Rand rated high at 28%, it was approximately $ 28,000 profit for your leveraged position. Add to that your leverage rate of $ 7,000, and you could make $ 35,000 from investing $ 1,000. Conversely, if gold prices and South African rand fell 28% in 2009, your leverage would lose $ 28,000 less than the $ 7,000 interest rate for a net loss of $ 21,000. Since you have only invested $ 1000 in your account, your account will be debited, except for your non-debit guarantee.
No Debit Guarantee. Like lump-sum interest income, a debit guarantee is not a nice thing. The non-debit guarantee turns the double-sided sword of the levers into a superior speculative investment structure, reminiscent of the long-range option of a limited-risk call. You have an unlimited upside from rand valuation and interest income. But your unpredictable loss is limited to the amount of your deposit in your Forex account.
Financing Currency Selection. When you buy shares, gold or other assets you pay in US dollars. When you buy a currency, you pay for it in the currency of your choice. You can sell USD / ZAR for Rand (ZAR), or you can sell EUR / ZAR, or JYP / ZAR. You can greatly improve your return by choosing the weakest currency. In 2009, the US dollar was the largest dog. Until 2010, its EUR-pig fell almost 10% in the last month alone. So even if the rand doesn't have a good year, you can still make a lot of money by buying it in a weaker currency.
Although the South African Rand pays more interest and continues to outperform the Australian dollar, if you bet on higher gold prices then you should have both currencies. Diversification reduces your exposure to country-specific risk (earthquakes, national shocks, etc.).