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 spike in major currencies a remarkable start to 2015


 -- Published: Sunday, 25 January 2015 | Print  | Disqus 

By Michael J. Kosares

The new year has ushered in a remarkable and unexpected turn of events for gold.  It is up significantly in four of the seven top currencies (the euro, British pound, Australian and Canadian dollars), up respectably in two others (U.S. dollar and Japanese yen) and down slightly in the last (Swiss franc).

The significant gains in gold’s value in a very short period of time demonstrate amply the value of gold as a hedge, not just against inflation, but against sudden currency devaluation and systemic financial and economic risks as well.  In short, it is important to see that gold owners in these countries got the protection they sought against adverse circumstances when they first purchased the metal.  In short, gold has performed as advertised.

Here is the amount gold has risen in percentage terms in the top currencies thus far this year (through 1/23/2015):

1. Euro – up 18.8%
2. Canada $ –  up 16.6%
3. British £ – up 13.1%
4. Australia $ –  up 12.4%
5. U.S. $ – up  9.2%
6. Japan ¥ –  up 6.6%
7. Swiss Fr –  down  2.6%

In the chart form, here is what those percentage gains look like:

Please note the big spikes in the euro, pound, Canada and Australia dollar charts.  The spiking reaction in Europe, on the surface, appears directly attributable to the European Central Bank’s introduction of quantitative easing, but there is more to it than that as explained below.

In Australia and Canada, the plummeting oil price has played a key role in driving down the two currencies precipitously, and gold sharply higher.  It seems only a matter of time until the central banks in those two countries introduce their own versions of quantitative easing as a matter of necessity.

The Japanese yen chart shows a similar spike in the gold price, but a good portion of the upswing occurred late last year. (This post focuses on gold’s 2015 price performance.)  In that regard, the yen price of gold led the pack.

Gold was performing similarly in the Swiss franc until the Swiss National Bank pulled the rug on its peg – a maneuver that resurrected the safe haven status of the currency and put a hold on the gold price.

Gold’s broad rally in 2015, in my view, could very well signal resumption of the secular bull market that has been at rest for the past two years.  Some will argue that we have seen false starts in the gold price during this period previously and that this is simply a repeat. I counter with the argument that none of those rallies were as broadly-based, as driven by a confluence of seminal events or displaying such sharp out-of-the-gate trajectories. Make no mistake, though it appears that gold and quantitative easing might be directly correlated, what is really going on is that both simply are reacting to the same problem – a bad economy with the potential for systemic financial and economic breakdown.  Central banks respond by printing money.  Investors respond by buying gold.

http://www.usagold.com/


| Digg This Article
 -- Published: Sunday, 25 January 2015 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



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.