Gold has risen to near record highs in many currencies internationally. Bullion is again acting as a safe haven for people throughout the world whose currencies are devaluing and for those who are fleeing instability, terrorism and war.
Gold is not reaching record highs per se, rather these paper currencies are losing their value or are being devalued. People throughout the world who own safe haven gold are, again, protecting their purchasing power.
Yet you would not know this looking at the many negative headlines and sentiment surrounding gold. Our Western-centric views lead to a simplistic focus on gold solely in dollars, euros and pounds. For most of humanity, gold’s price in dollars is irrelevant. What is relevant is gold in their local currency terms.
The gold charts from Nick Laird’s excellent www.sharelynx.com clearly show this important and little known fact.
People in all continents of the world are being protected by owning gold. People in the Ukraine in Europe, in Syria in the Middle East, in South Africa in Africa and indeed, in Brazil and Argentina in South America are all seeing their currencies devalue rapidly as competitive currency devaluations and currency wars intensify.
The direct experience of these people – both historically and today – clearly shows gold’s importance as financial and monetary insurance. The terribly sad scenes of desperate refugees and economic migrants trying to access our wealthy European shores and nations is a tragedy of biblical proportions. Indeed, it has parallels with the tragic Jewish experience throughout history.
Nothing will compensate these people for the destruction of their nations and being forced to leave their homelands in search of peace, security and a better standard of living. Those Syrian, Egyptian, Iraqi and other refugees and economic migrants that have brought portable gold coins and bars or even gold jewellery with them will be in a better position to start new lives in Western nations.
As were the Jewish people who fled Germany and other European nations in the 1930s and 1940s.
Unfortunately geopolitical risk is set to continue and will likely get worse before getting better.
We expect currency devaluations to deepen and intensify. It is complacent in the extreme to assume that other fiat currencies such as the dollar, euro and pound are immune to this and that they too will not be devalued in the coming years.
Today, most of the developing world, tomorrow most of the developed world. Today Ukraine, Syria, South Africa and Brazil. Tomorrow Ireland, Greece, the UK, the EU, other Middle Eastern and African nations and the U.S.
With all due respect to the on-going and all-consuming focus on the ‘all powerful’ Federal Reserve and their long awaited piffling 25 basis point interest rate rise, or not. In our unstable world the tragic refugee crisis and the global competitive currency devaluations that are being seen today are of far greater economic and monetary consequence to the wealth of nations and their people.
Today’s Gold Prices: USD 1109.75, EUR 987.54 and GBP 719.82 per ounce.
Friday’s Gold Prices: USD 1108.00, EUR 977.98 and GBP 716.97 per ounce.
Gold had a marginal loss of $3.20 to $1,105.50 while silver fell 1 cent to $14.43 an ounce on the COMEX yesterday. Gold was a few dollars higher in gold trading in Singapore and is marginally higher in European trading.
Gold is holding near $1,109/oz this morning, a touch higher than where they ended Tuesday but little changed from this time yesterday. The metal fell 0.3% yesterday, but remained hemmed into the narrow (less than $8) range that it has stuck to this week.
Silver bullion and platinum are also a touch higher, but palladium’s down 0.6%, surrendering some of yesterday’s impressive 2.3% gains. All eyes are on the ‘all powerful’ Fed.
Indian Gold Imports Jump 14% -138T Gold In August. YTD 998T – Economic Times
Gold ends lower as U.S. equities, dollar gain – MarketWatch
Who is the player and who is being played? – The Perth Mint Australia
The Attack of The Apologists – TF Metals Report
JP Morgan Loses 45% Of Registered Gold Stock In One Day – Goldseek.com
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