NZD Price movement

I am interested to try understand , why would my current gold holding purchased here be worth less now than when I purchased in April this year? I understand fees are subtracted initially but I would have thought Id seen some reasonable price rise towards my original value paid for.



  • GMONEY1GMONEY1 Posts: 426 Silver ✭✭✭✭
    edited August 2017
    @Andrewm the number of grams of gold likely hasn't changed since your purchase**, but the NZD has moved a little bit this year. In April, gold was in the 1800-1850 NZD range. When you buy... there is a premium on that. So, in order to have an unrealized fiat gain at the moment, the price would have to clear that upper range and then some (conceptually)... because you'd sell at the bid (which is lower than the ask or the midpoint).

    The nominal price of gold has gone up recently but it hasn't cleared 1830NZD, so that's likely why you are seeing your NZD balance is less than what you shelled out.


    On that note, dollar cost averaging is a good concept to google and research. Or just generally, traditional economic principals suggests that you might want to buy more gold grams when the nominal price is relatively lower (and fewer when the price gets unreasonably high). There are different strategies... but in the end, you'd be accumulating gold grams... at different nominal prices... over time. Hope this makes sense. Cheers

    **unless you're in the new holding and experienced 4 months of marginal storage fees.
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