Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench

UK downgrade knocks sterling

IMG Auteur
 
Published : February 25th, 2013
310 words - Reading time : 0 - 1 minutes
( 2 votes, 5/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...

24hGold - UK downgrade knocks ...Moody’s announcement late on Friday that it was downgrading the United Kingdom’s credit rating from AAA to Aa1 has had predictable consequences for sterling: the currency sinking to $1.5073, its lowest level since the summer of 2010 (though still considerably above the $1.3733 level reached in March 2009). There was a similar pop in the sterling gold price immediately following the announcement, with the effects spilling over into the main US dollar gold price this morning, with the metal now trading over $1,590/oz. This is the first time the UK’s rating has been cut since 1978.

The pound is now at a 16-month low against the euro (at €1.14), with some predicting parity in this rate by the summer. The Sterling Trade-Weighted Index – which measures the pound against a basket of currencies, weighted by trade volumes – sunk by 1% this morning to its lowest level since September 2011. All of this looks like putting further upward pressure on the UK’s inflation rate, given the country’s still-large current account deficit and the relatively inelastic nature of food and fuel demand.

Is this a game-changer for the gold market? To the extent that it reminds people that – as opposed to the problems in the eurozone – being able to print your own money is no panacea, it should be helpful. Moreover as far as American investors are concerned, there are signs that the UK is the “canary in the coal mine” for the US. As Peter Schiff argues in this interview, the problem can be summed up by the phrase “back to the 1970s”, or the word “stagflation”: declining GDP growth combined with stubbornly high inflation. As Schiff says: “you live by the printing press, you die by the printing press.”

Given these economic pressures, these personal finance and lifestyle tips from GoldReference.org are worth considering (here and here).

Thanks to Goldmoney from www.goldmoney.com
Companies Mentionned : Coal & Allied Industries |
Data and Statistics for these countries : United Kingdom | All
Gold and Silver Prices for these countries : United Kingdom | All
<< Previous article
Rate : Average note :5 (2 votes)
>> Next article
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
First Report since April, 2014
05 FebAndy_K1
Jason, One of your articles written way back is one of the reasons I started paying attention to silver and shortly thereafter started to ...
Something has Changed in Gold St...
06 Febneville
No nothing strange has happened in GOLD stocks....absolutely nothing.....The fact of the matter is that you byrne have been playing the man and...
The Revisionist Theory and Histo...
05 Febovertheedge
"The key is in the hand of the U.S. government. It is the same key that was used to lockthe U.S. Mint to silver in 1873, and to gold sixty years la...
First Report since April, 2014
05 FebS W.1
Here I was just 2 days ago thinking whatever happened to that evangelical silver guy. Low and behold up he springs, like some spirit from the g...
LBMA Silver “Price”: A Perfect S...
03 FebS W.
There is no doubt that the Comex can be used as a casino for those who want to trade Silver up/or down or maybe some just wish to take a small punt...
LBMA Silver “Price”: A Perfect S...
30 JanOzSILV1
Bron refuses to EVER admit this market is a Casino and the disconnect between Paper and Physical is a big clue to this
LBMA Silver “Price”: A Perfect S...
30 JanS W.
Usually I enjoy Bron's take on things,but to be perfectly honest, I can't understand 95% of what he his on about here. I get the feeling that h...
ANOTHER NAIL IN THE U.S. EMPIRE ...
30 JanDemosthenes0
Very naive and pretentious article! The author thinks he knows everything and yet knows next to nothing. Shale gas producers are neither stupid n...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
Lara Expl.(Cu-Zn-Au)LRA.V
Revised Resource Estimate Report Filed for Maravaia Copper Gold Deposit
CA$ 0.34+1.47%Trend Power :
Corporate news
Black HillsBKH
Black Hills reports 4Q loss
US$ 50.90-0.59%Trend Power :
Corporate news
Kinder Morgan(Oil)KMP
Midstream Companies Were above the 20-Day Moving Averages
US$ 102.03+1.98%Trend Power :
Corporate news
Kinder Morgan(Oil)KMP
Midstream Companies Were above the 20-Day Moving Averages
US$ 102.03+1.98%Trend Power :
Corporate news
Devon Energy(Ngas-Oil)DVN
Gasoline Inventories Rose Last Week despite Fall in Production
US$ 23.68-4.71%Trend Power :
Corporate news
United States Steel(Fe-Sn)X
U.S. Steel (X) States Ratification of Labor Agreements
US$ 7.77-2.14%Trend Power :
Corporate news
Black HillsBKH
4:34 pm Black Hills Corp beats by $0.04, misses on revs; guides FY16 EPS below consensus
US$ 50.90-0.59%Trend Power :
Corporate news
Black HillsBKH
Black Hills Corp. Reports 2015 Fourth Quarter and Full Year Results
US$ 50.90-0.59%Trend Power :
Corporate news
Transcanada PipelinesTRP.TO
TransCanada to Sign Substantial Agreement to Benefit Québec Economy
CA$ 48.65+0.16%Trend Power :
Corporate news
Devon Energy(Ngas-Oil)DVN
4Q15 Crude Oil Prices: Fallout for the Energy Sector and SPY
US$ 23.68-4.71%Trend Power :
Corporate news
Comments closed