How You Can Use the AMEX and the NASDAQ to Convert Dollars to Gold Prices
Ever since Nasdaq started listing penny stocks, the share price for Sarasols has been very predictable. No matter which way the market moves, the share price for JSE will follow. But what happens if you’re an investor who is expecting a big move in the share price? This may be the time to buy. Let’s take a look at the reasons why.
One reason why you should invest now is because of the strong Australian dollar. Over the past few years, the Aussie dollar has strengthened considerably against the US dollar. This means that if you purchase Aussie shares, you can expect to earn even more profit than you would have done a few years ago. If you have bought shares in other stock exchanges before, this probably hasn’t happened, so now is the time to buy Australian dollars.
Another reason why it’s time to invest now is because US stocks are getting more expensive. This is due to the fact that the Federal Reserve is keeping interest rates lower, which in turn makes goods and services more expensive for the average person. Australia has the lowest cost of living in the major currencies. So naturally, we earn more money from selling our dollars when the US dollar strengthens. When you purchase shares in other stocks, you earn less compared to when the dollar weakens. Keep in mind that over the past few years, there have been many instances when the NASDAQ reached record highs while the US dollar weakens.
Now that we have established that the NASDAQ has become somewhat over inflated, it’s important to remember what drives the share price. The most important factor is called the fundamental allowance. This refers to the maximum profit that a stock broker will allow his clients to earn based on the fundamental value of the company. Now, if a company has relatively new stocks, it has a much larger basic allowance percentage.
Now, let’s take a look at another important indicator of strength in the Australian economy, which is the AMEX index. The AMEX is basically the stock market of international currencies. If you use the Yahoo! Finance home page, you can find out which currencies have gained and lost value over the past year.
If you look at the list that Google released, you’ll notice that the currencies most recently gained in value were the euro, Japanese Yen, Swiss Franc, and the Australian Dollar. Now, if you look at the list of strongest currencies that the NASDAQ has, you will notice that the top currencies on the list are the Australian Dollar, Swiss Franc, and the Euro. The reason why the Euro is included on the Nasdaq list of strongest international currencies is because it is one of the strongest currencies in Europe as well as in the world overall. Now, if we take a look at the AMEX, we see that the currencies that are gaining the most value in this index are the Swiss Franc, the Euro, and the Japanese Yen. Now, if you were to put all of these together, and compare them to the actual USD/ZAR, you would find that the AMEX had slightly greater strength than the Nasdaq.
Now, when you consider whether or not the AMEX or the NASDAQ are a good place to be investing right now, you have to consider their weaknesses. For one thing, they are largely localized and only allow trading of currencies from a few select countries. Now, if you really think about it, wouldn’t you want to be able to convert dollars to Australian dollars, British pounds, or even Turkish lir? Now, if you are looking for an investment vehicle that has a very low cost of ownership as well as very low risk, then there is no better investment vehicle than gold.
One other thing that we should keep in mind is that gold is rather difficult to store and transport. Right now, it is best to invest in these types of assets in safe havens like South America, as well as the Caribbean regions. Gold is also rather volatile, so if you were to invest in gold, you are looking at potentially losing your money pretty quickly. Still, we should keep in mind that these are relatively new concepts, so there hasn’t been enough time for research. Still, if there was, then you would probably want to jump on the bandwagon before other people do, and that is exactly what you are going to find when you use the AMEX and the NASDAQ to convert dollars to gold prices in the world of finance.