• 538 days Will The ECB Continue To Hike Rates?
  • 538 days Forbes: Aramco Remains Largest Company In The Middle East
  • 540 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 940 days Could Crypto Overtake Traditional Investment?
  • 945 days Americans Still Quitting Jobs At Record Pace
  • 946 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 950 days Is The Dollar Too Strong?
  • 950 days Big Tech Disappoints Investors on Earnings Calls
  • 951 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 952 days China Is Quietly Trying To Distance Itself From Russia
  • 953 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 957 days Crypto Investors Won Big In 2021
  • 957 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 958 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 960 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 960 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 964 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 965 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 965 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 967 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

Gold: New Global High vs. Top 10 Currencies

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.

 

Back to homepage

Leave a comment

Leave a comment