The price of Gold has gone up exponentially in the last 6 or 7 years, from $300 to $1000 the change has been dramatic and a big welcome to Gold miners around the world. But for Canadian, Australian and other world miners, the change of price hasn't been as great as it may seem and its fall from $1000 is not really a fall at all. I'll focus on Canada for this post but the calculations can be applied for any other currency.
When the dollars are at par, the price of Gold is the price of Gold, simple enough.
So using ($1USD)/($CDN) x (price of gold).
In 2001 when Gold was $300 and the dollar at .65, Gold was actually at $461
in 2003 when Gold was $430 and the dollar at .75, Gold was actually at $573
in 2006 when Gold was $650 and the dollar .87, Gold was actually at $747
in 2007 when Gold was $800 and the dollar .98, Gold was actually at $816
in 2008 when Gold was $1000 and the dollar 1.05, Gold was actually at $952
Today, when Gold is at $815 and the dollar at 0.81, Gold is actually at $1006
$1000 Gold was nice for Canadian producers, but cheaper gas, a lower dollar and $815 Gold is even better. If Gold returns to $1000 dollars and the Canadian dollar continues to falter against its American counterpart, miners will continue to make healthy profits.
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You should update this for today. $1100 gold. This must be an alltime high? Any comments on what it means for Canadian producers developing or exploring for gold mines?
Wish you would start writing again.
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