Close X Cookies are necessary for the proper functioning of By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
Gold & Silver Prices in

Gold prices: it’s all relative

IMG Auteur
Published : February 08th, 2013
373 words - Reading time : 0 - 1 minutes
( 1 vote, 5/5 )
Print article
  Article Comments Comment this article Rating All Articles  
Our Newsletter...

24hGold - Gold prices: it’s al...Given the almost exclusive media emphasis on the gold price in US dollars, it’s easy to forget the sometimes-wide divergence in performance of other national currencies versus gold. The Japanese yen and British pound are providing a good example of this at the moment; gold is up around 5% since late December in sterling terms, and has posted gains of roughly 15% over the same period against the yen. In comparison, gold has gained less than 1.5% against the US dollar in that time-frame.

A rising tide lifts all boats, just as a sustained rise in the US dollar gold price will accompany gains in gold priced in other currencies (as has been the case ever since the abandonment of the gold standard). But in the short-term, gold can act as an important hedge against weakness in currencies other than the dollar – as this decadal gold price performance chart from James Turk makes clear.

Take the second half of 2008 for example: the financial crisis saw a huge rush into the perceived safety of the dollar and US Treasuries. Given that problems in America’s subprime housing market lay at the heart of the crisis, this was one of the more bizarre examples of everybody choosing to rush headlong towards the mushroom cloud. Gold priced in USD suffered as a result, gaining just 5.8% for the year. But look at how gold faired that year relative to commodity currencies like the Canadian and Australian dollars, as well as sterling – the latter battered by weakness in big finance, given the UK economy’s huge exposure to this sector. Even gold priced in euros gained 11% that year – not spectacular, but certainly respectable given the carnage that was going on in other markets.

The point is that the aft repeated claim that “gold got hammered in ’08” and that “it wasn’t a safe haven” were only true as far as the dollar was concerned (as well as those other safe haven favourites, the Swiss franc and Japanese yen). But for many investors in Europe, Canada, Australia and elsewhere, the yellow metal fulfilled its role as a safe haven during the crisis. Something to bear in mind as talk of a “quiet sterling crisis” increases.

Data and Statistics for these countries : Australia | Canada | All
Gold and Silver Prices for these countries : Australia | Canada | All
<< Previous article
Rate : Average note :5 (1 vote)
>> Next article
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Trump’s Best Debate Performance ...
A vote for that woman is a vote for WWIII. Mr Trump is a builder, not a warmonger - do you want a future on earth for you and yours - or Armageddo...
Silver Bull Market in Force
22 OctS W.
Interesting tech analysis here. Good stuff as I have never looked at 'full bars' closing above or below a 20 bar MA. Only ever the close p...
The Fascist Threat
22 Octsam_site
Your idea that extreme right and left fascism meet is brought out in the Spanish Civil War. The globalists created right wing fascism in Germ...
Trump’s Best Debate Performance ...
21 OctThe Recusant-1
Yes, this WAS his best debate performance! But for all the reasons you mentioned, he failed to deliver. And that's why he will be defeated next mon...
Trump VS. Clinton-Who’s “Better”...
21 OctDoom1
Uh...I'm not sure I understand the conclusion here.
Trump’s Best Debate Performance ...
20 OctS W.0
I have only watched the 3rd debate. I am not American. Clinton is a far more polished debater and was far better prepared than Trump. I agr...
Fifteen Years Into the Afghan Wa...
19 Octsam_site
Follow the money folks. Heroin production jumped 13X when the CIA globalists took over Afghan production. You'll never get the sheeple to see the...
My Most Passionate Warning Yet
17 Octstackerguy551
Thank you Mr. Hoffman. I am concerned by the tone of your article, it is pretty scary to say WWIII is probable, and, so it may be, considering some...
Most commented articlesFavoritesMore...
World PM Newsflow