The constant propaganda about the ebb and flow of the Gold price vs the $ USD and the rabid reporting of every little fluctuation in a downwards direction makes us chuckle on a daily basis. The point that people miss here is that although Gold is technically priced in US Dollars, it is a truly international trade, and it is of course also priced in every other currency in the world locally.
If you are looking at Gold on just the USD charts, you are missing the main point of the metal.
Note that although Gold has come down off it’s 2009 US Dollar highs of $1225+ which was mainly due to Dollar weakness at the time, to the sub $1100 mark, as the charts below show, it is simultaneously making new highs against the Euro (which is under pressure currently due to the problems in Greece now, and the Euro zone generally) and at the time of writing this is also hovering just under it’s all-time highs in GBP Sterling.
Back in 2009 Kitco launched their Gold Index which allows people to track the “real Gold price” against a global basket of currencies not just the USD, and as the chart below shows the Dollar is clearly losing it’s value against Gold faster than the rest of the world put together.
Gold was around thousands of years before the Dollar, and it will be around thousands of years after the Dollar, and indeed even long after the US as we know it has ceased to exist, Gold will still be here, and you will still be able to trade it for other things of value.
Gold is the ultimate hedge, it doesn’t go anywhere, but the various pretend paper wealth that assigns the metal a “value number” gyrates around it like a skint pole-dancer at a Goldman Sachs works do.
It cares nothing about the USA, the Dollar, the blatent Gold market manipulation by the bullion banks, it will outlast every single trader, and every single bank.
You can be confident that in real terms, Gold is worth the same today, as it was yesterday, and will be the same tomorrow, next year, the year after, it’s just the paper value system we have deteriorating around it that gives the supposed rises in price. Barring a complete meltdown of paper we have today and a Gold revaluation taking it through the stratosphere, it will continue to do this, as it always done.
What’s your value stored in?
Buy Buy Buy Gold