The price of gold in NZ$ has now fallen to its lowest level since early November 2009, almost a four year low, on a nominal price basis.
In fact, an ounce of gold was also todays price back in November 2008.
The NZ dollar is rising faster than the gold price in US dollars, making the precious metal easier to buy here.
With today's release of CPI inflation data, we can also see that on an inflation-adjusted basis, gold is now 7.1% lower than it was in November 2009, an annual decline of 2.1% over that period. These results are for an investor who still holds gold purchased in November 2009, and uses the inflation calculator published on the Reserve Bank's website.
The movements in the gold price, especially given the high levels of uncertainty surrounding the US currency, are baffling many people.
The current low real price does make buying the precious metal now very attractive for investors who have decided to increase their holdings.
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