In the same category

G20 meeting amid increasing currency tensions

IMG Auteur
 
Published : February 12th, 2013
385 words - Reading time : 0 - 1 minutes
( 3 votes, 4.7/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : Crisis Watch

24hGold - G20 meeting amid inc...We saw a slight return of euro jitters in the second half of last week, following comments from European Central Bank President Mario Draghi, hinting that the strengthening euro since last summer was problematic for the eurozone. The currency fell from a high of US$1.36 on Wednesday to below $1.335 this morning, but has recovered slightly. We’ve been hearing more concerns from eurozone leaders about this recently, what with Francois Hollande’s comments on this subject and German finance minister Wolfgang Schäuble expressing “deep concern” about the direction of Japanese monetary policy, with the Bank of Japan now trying to force a substantial depreciation in the yen.

Even the Venezuelans are getting in on the act: with Hugo Chavez’s government last week announcing a devaluation in the country’s fixed exchange rate with the dollar – from 4.3 bolivars per dollar to 6.3 bolivars. Elsewhere in Latin America Cristina Kirchner’s Argentine administration is resorting to evermore farcical attempts to disguise the extent of Argentina’s inflation problem, with supermarkets and electronic retailers now banned from advertising in the country’s top newspapers. This follows hot on the heels of government orders to freeze prices for two months. Unofficial estimates place annual inflation in Argentina at 26%; priced in Argentine pesos, gold has been doing very well recently.

Currency wars will likely again be a hot topic in this week’s financial press, given that Russia is hosting a meeting of G20 finance ministers and central bankers. The Russians, like the Chinese, have been steady gold buyers since 2007 – in fact, as Bloomberg reports, at 570 tonnes over the last decade Russian bullion purchases have actually slightly exceeded official Chinese purchases over the same period. Of course the caveat in that sentence is the word “official”: given the uncertainty about bullion flows around the world – highlighted by this morning’s London Times front page story about Iranian oil-for-gold sanction-busting – Chinese gold accumulation likely far exceeds that claimed in official data.

The point is that the Chinese and the Russians both recognise the simple truth stated by one Russian parliamentarian to Bloomberg: “The more gold a country has, the more sovereignty it will have if there’s a cataclysm with the dollar, the euro, the pound or any other reserve currency”. Too bad more people in the West don’t understand this.

Data and Statistics for these countries : Argentina | Japan | Russia | All
Gold and Silver Prices for these countries : Argentina | Japan | Russia | All
<< Previous article
Rate : Average note :4.7 (3 votes)
>> Next article
Latest topics on forum :
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
2018's 'Short' of the Year
23 Aprpearsallmarc
I really like the idea of this trade. Is there any way to execute this trade with long dated options (on SLV & GLD) or do you have to buy and s...
State of Failure
11 AprThe Recusant1
My, my...James's article almost sounds as if Trump himself might have gassed the people as a deflection and not Syria at all! Why...why...that's co...
State of Failure
09 AprGypsy
The STOCK MARKET trend has been DOWN. In fact, the word after Friday's Crash was "Standby for Monday." In a Moment of Severe Stress, the so-calle...
Flat-Earther FINALLY Launches Himself Into The Air, Crashes, Goes T...
05 Aprsirqitous
Seen realistically, however, this was money well spent for TPTB, even if they never get that loan repaid! As free advertising for the MSM cover st...
Flat-Earther FINALLY Launches Himself Into The Air, Crashes, Goes T...
03 Aprprljr
The really really really really unfortunate thing is that there are people and i use that word "people" lightly, are for no other explanation that ...
Flat-Earther FINALLY Launches Himself Into The Air, Crashes, Goes T...
28 Marprblmsolved
The really unfortunate thing about this story; For that kind of money he probably could have hired someone with access to a modern performance ...
Drums Along the Potomac
23 MarGypsy2
I see there's a HUGE market for Conspiracy Theories and FAKE NEWS in the U.K. ~ from the Top down. Theresa May runs her Conspiracy Theory up her f...
Drums Along the Potomac
18 MarThemis-1
While I, too, don't give a hoot about the Skripals, the UK cannot tolerate foreign agents running amok and potentially endangering innocent British...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS