LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

GoldSeek.com to Launch New Website
By: GoldSeek.com

Is Gold Price Action Warning Of Imminent Monetary Collapse Part 2?
By: Hubert Moolman

Gold and Silver Are Just Getting Started
By: Frank Holmes, US Funds

Silver Makes High Wave Candle at Target – Here’s What to Expect…
By: Clive Maund

Gold Blows Through Upside Resistance - The Chase Is On
By: Avi Gilburt

U.S. Mint To Reduce Gold & Silver Eagle Production Over The Next 12-18 Months
By: Steve St. Angelo, SRSrocco Report

Gold's sharp rise throws Financial Times into an erroneous sulk
By: Chris Powell, GATA

Precious Metals Update Video: Gold's unusual strength
By: Ira Epstein

Asian Metals Market Update: July-29-2020
By: Chintan Karnani, Insignia Consultants

Gold's rise is a 'mystery' because journalism always fails to pursue it
By: Chris Powell, GATA

 
Search

GoldSeek Web

 
Gold: New Global High vs. Top 10 Currencies



By: Adrian Ash, BullionVault


-- Posted Friday, 6 November 2009 | Digg This ArticleDigg It! | | Source: GoldSeek.com

The official bid for gold, let alone private-sector demand, looks likely to hold strong...

 

GOLD didn't only break new Dollar highs this week.

 

Jumping to 8-month highs against the Euro, Swiss Franc and Canadian Dollar, it also took out fresh records versus the Indian Rupee and Chinese Yuan.

 

And more critically still, gold broke new ground against the world's major currencies en masse. Critically as in critical.

Buying 200 tonnes of metal from the IMF, the Reserve Bank of India sent gold to new highs in terms of all the money that counts.

 

Friday's news that America's job-loss recovery is worsening then confirmed the new record, peeping just above the previous hit set in Feb. of this year.

 

Weighted against the world's top 10 currencies by GDP, the price of gold broke its previous high on Wednesday this week. Shown as a percentage change since Jan. 2000 above, BullionVault's Global Gold Index does indeed lag the Dollar price (244% vs. 289% to date), but it's clearly beaten all other asset classes so far this decade.

 

And given what India's move says about Dollar diversification (that a lump of metal yielding zero and trading at all-time record highs also beats holding Euros, Yen, Yuan, Sterling, Reals, Loonies, Roubles and Pesos...), gold's return to central-bank bids might be a long way from finished.

 

Ten years ago, nobody wanted it. Least of all those central banks in Europe holding the most but about to launch a new currency – one lacking any sovereign-government backing, let alone a link to gold bullion.

 

By the time they stopped selling gold amid the financial crisis wrought by their last flirtation with record-low returns to cash, the rising powers of China, India and Russia – moving from fifth, ninth and twelfth to 4th, 8th and 10th in terms of global GDP respectively – had already begun hoarding metal themselves.

 

Now the US, Japan and Europe are holding rates at fresh record lows as near to zero as damn it. The official bid for gold, let alone private-sector demand, looks likely to hold strong from here.

 

Adrian Ash

 

Formerly City correspondent for The Daily Reckoning in London and head of editorial at the UK's leading financial advisory for private investors, Adrian Ash is the editor of Gold News and head of research at BullionVault – winner of the Queen's Award for Enterprise Innovation, 2009 – where you can Buy Gold Today vaulted in Zurich on $3 spreads and 0.8% dealing fees.

 

(c) BullionVault 2009

 

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.


-- Posted Friday, 6 November 2009 | Digg This Article | Source: GoldSeek.com





 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.