While these figures may seem a little crazy and a lot crazy high, they are actually well within the realm of reality, especially, if we are talking about gold exchanged for non-U.S. currencies. Remember, gold is poised to climb higher this week with China returning from holiday after having been away for the past week.
If your planning a trip to Vietnam anytime soon it would be advisable to skip past the gold shops. Sure, stop in to take a look at all the variety of gold jewelry, bars and medallions that are unavailable in the U.S. but don’t bother adding any of it to your stack. Gold in Vietnam is running above $1,800 an ounce!
When I hear people doubting what I’ve been saying for close to two years about gold going much, much higher than today, I just go about my business and do my thing. If you look around the world you see what is happening in places like Vietnam and in other major gold hoarding countries you see gold is exploding higher all around the world.
There have been a number of articles over the past few months stating gold is all time highs in a variety of major currencies. For example, gold in Australian dollars, today, Sunday October 6, 2019 at 8:37am EST, is clocking in a $2,221.78 / ounce and Canadian dollars, $2,002.65, the Euro $1,370.65 and British Pound is $1,219.97. So, once these lofty heights are reached in Federal Reserve Note, U.S. dollars, it shouldn’t take anyone by surprise. I understand the Canadian and Australian dollars are considered “weaker” currencies than some of the others, but that doesn’t make them any less meaningful; or does it?
It is only venturing outside the U.S. and western world nations that we begin to see realistic, massive, upticks in gold valuations. In Vietnam, for example we found this report
On the morning of October 4, the global price of gold was $1,508 per ounce, up $8 per ounce (both selling and buying price) against the day before.
Phu Quybuys SJC gold at VND41.85 million ($1,819.57) per ounce and sells it at VND42.25 million ($1,836.96) per ounce, an increase of VND300,000 ($13.04) in both buying and selling compared to the session on October 3.
SJC gold is sold by Saigon Jewelry Co., Ltd. for VND42.05 million ($1,828.26) per ounce (VND200,000 – $8.69 more than a day before), and is bought at VND41.7 million ($1,813.04) per ounce (up VND150,000 – $6.52 compared to October 3). Source
If we look at what happened in India back in August we see something similar as is taking place in Vietnam right now.
The prices of gold on Monday jumped to fresh all time high amid ongoing US-China trade tensions and rise in demand for safe assets. The prices of yellow metal surged nearly 1 per cent to all time high levels, owing to gains in the foreign markets and as the Indian rupeeplunged to the lowest level in 2019, global news agency Reuters reported citing dealers. The yellow metal futures touched a record high of Rs 39,196 per 10 grams in the morning trade, taking their gains to nearly 25 per cent this year. The local silver futures were 1 per cent higher at Rs 45,058 per kg, after rising to Rs 45,148 earlier in the day, a level last since in October 3, 2016. Source
While gold has backed off from such an incredible highs in India it is still, approximately, Rs 34,196 per 10 grams. This figure represents an upswing of 18-20% for the year. If you combine these heights with the fact that India has some very steep taxes, tariffs and import duties on gold it is no wonder the people of India resort to gold smuggling and turn to silver during times like this.
Trade wars, geopolitical unrest, wars without end, nations rising, nations stagnating and economies around the world in turmoil paints a picture that gold likes to see. Gold, as James Turk explained to me so many years ago, is like a barometer that measures the health of a nation and the world. The higher gold goes, the sicker the “patient” is becoming.
If you review this with an eye towards a failing world economy a move towards silver would only make sense for the Indian people and people around the world. People all over the world are experiencing the same things we are experiencing here. Each country, of course, is different but for the most part the banking cabal have been “strip mining” all major economies and leaving the people high and dry. If the economy in the U.S. is so great and incredibly strong why are there more than 500,000 people homeless?
When traveling abroad you may want to visit the gold shops as a “tourist” to take in some of the beauty of the local craftsmen, but before you dive in and pick up that piece, check the exchange rate, not to mention taxes, tariffs and import / export duties. Personally, I would love to visit the gold district in a great many countries with most dealing in jewelry and other non-coin items. Some of what I’ve seen here in the U.S., in pawn shops, from the Middle and Far East is nothing short of breathtaking.
