The winner in the currency war

Maybe you don’t think gold is a currency. If that’s the case, you can skip this blog and move on to the one on nannies below. If you do, however (and we do), you will enjoy this chart. It shows the extent to which the world’s currencies have fallen against gold in the last 12 years. If there is a currency war underway, I think we have a winner!

Major currencies v gold since 2001

 Major currencies v gold since 2001

14 Responses

  1. 17/01/2013, @CasperJames wrote

    https://soundcloud.com/thedeadreds/people-rise-the-infowar

    We are blessed as servants of the highest order, empowered with importance to convey a warning.Tyranny a domestic disease now has reached epidemic proportions.
    Unemployment sores fueling desperate indecent greed for more, hindering impatience towards a fading nations whisper of reform. Tired of being fed with the edge of a sword, a fight until death is LAW as pride of the young can not be bought. Information is used as a tool for war in which fiction and fact are distorted and fought. The prize is the mind so it can be poisoned to perform, held captive on a planet without a heaven for a cure.
    We live in the reign of the Golden Calf, shackled to desires the machine thieves without thought. It conquers the family with divides, it robs our time as eyes of insight are perpetually blinded by constant lies while freedom is at the hight of democratic demise. Awoken from a slumber of obedience, we, the people rise.

  2. 17/01/2013, @CasperJames wrote

    Poverty is the pantomime of controlled collapse under a flying false flag as our homelands attacked. Financial arsonists silence patrons of truth, paid off with cash by cats in there fat city suits. Keep the creatures mute, constrain their facts, dumb the masses and provide their food. Fuel the fear so they continue to consume, give them a HD TV, a copy of HEAT magazine, then watch an idle disease infect their nests with recycled stories of low-self-esteem.

  3. 17/01/2013, Romford Dave wrote

    They’re going to have to come up with a much catchier hook, if they want to be taken seriously as potential x-factor winnerbees.

    Whilst there was a hint of rhythmic syncopation, I’d say Ryland’s cover of ‘Tragedy’ offers a more convincing threat to the macho world of bankers and banking.

  4. 17/01/2013, Goldbug44 wrote

    Surely the pundits must now realise (belatedly!) that this phrase was first conjured up by Jim Rickards in his splendidly definitive opus of the same name:-””Currency Wars”.
    Just read this book and you will know where to invest over the next few years.
    (am sure Merryn has it on her bookshelf)

  5. 17/01/2013, Colin Selig-Smith wrote

    The Japanese are getting their skates on though. Almost a perfect parabola off a cliff. There’s been no movement like this since 2000 (earlier, I don’t have data to hand) so we’re going to see some profound effects there I reckon.

    Euro’s next for the chopping block. Then America will panic, and as usual the UK will follow along because our “top people” don’t really know how to do otherwise.

  6. 19/01/2013, Ellen wrote

    Its funny that in the past year, when quantitative easing is being pursued so much more aggressively, gold has come to a standstill – especially when equities are climbing.

    As with the libor scandal, I am sure there are all sorts of confidence tricks going on behind the scenes, which is why I remain happy to continue to look and the fundamentals that took gold to $1650 ish.

    I would still prefer to see central banks making attempts to normalise economies – allowing corrections, where necessary, and forcing both state and individuals to stop relying on debt they have no way of repaying.

  7. 20/01/2013, Aff wrote

    I won’t disagree about gold being the clear winner. It is the only ‘currency’ in that list which is also a store of value.

    It can be argued that silver is also money. Historically silver has been used as money just as gold has. Many languages in the world have the exact same word for silver and money.

    Silver is also a real bargain at todays suppressed manipulated prices. Despite the ridiculous notion of having to pay VAT on it

  8. 20/01/2013, Dr Ray wrote

    I was until fairly recently also a believer that gold offered the individual an escape from financial repression and govenment larceny but I am no longer so confident.
    Imagine a devious and rapacious government made licenced bullion dealers reveal the identity of anyone buying say over £5000 of bullion and then passes laws to make it illegal to deal in scrap metal for cash. Finally they install metal detectors at ports and airports – even at railway stations maybe.
    It can all be done in the name of preventing money laundering by drug dealers and terrorists of course.
    The final step would be to introduce a wealth tax – for example making anyone with significant wealth pay for say university education for their children or long term medical care. This would require meanstesting almost everyone and anyone attempting to hide their gold would be severely punished and unable to sell it or take it out of the UK. It would essentially become worthless. Farfetched? Maybe.

  9. 20/01/2013, Aff wrote

    Dr Ray, that scenario possibly could happen but they won’t be able to maintain such insanity for long. If it does happen don’t give up your metal after all you may have lost it in an unfortunate boating incident.

  10. 21/01/2013, dr ray wrote

    @Aff

    All the steps of the scenario I have described have already been put in place. Currently gold is not considered an asset for means testing unlike property or cash but it would need very little effort to change its status especially since Basel III has recently reclasiffied gold as a Tier 1 asset . Also it seems inevitable that the state pension and NHS will be means tested before too long so will essentially act as awealth tax on the elderly as care home fees do already and the young have their own wealth tax in the form of student loan repayments which could easily be linked to wealth rather than income – in the name of fairness of course to prevent the Eton Toffs who inherit the family estate but don’t have earned income avoiding the student fee repayments.

  11. 21/01/2013, Ellen wrote

    @Dr Ray. I have been trying to get more information on the incoming BoE governor Mark Carney, and I have to say, his form does not look good. He has already been making noises that inflation should not be a consideration while setting monetary policy.

    As asset prices here in the UK already seem very high, I think it possible we will start to see capital flight out of the UK. And with a guy like Mark Carney being put in charge, it looks like an important time to hold on to gold.

  12. 21/01/2013, Chester wrote

    Diversified currencies in offshore accounts is one way to go. The next stage of deleveraging is underway, and when markets finally tumble, the US$ should rise at the expense of everything else

    We’ll see just how robust the gold argument as this unfolds, but I plan to buy at $500 or less when this next leg down is over. If I read it correctly, the next support level will be $1530, after which a more significant decline should follow

  13. 21/01/2013, Dr Ray wrote

    Ellen
    The BoE haven’t targeted inflation for several years and even when they thought they were targeting inflation in the early 2000s they were looking the wrong way and completely missed the fact that house price inflation was well into double digits.

    The only difference recently is that central banks have dropped the pretence – so more explicitly than others.

    I can certainly see gold going to £10,000 or even £100,000 an oz in my lifetime but my point is that unless I want to deal with gangsters and the criminal underworld in my old age, it won’t do me any good because I won’t be able to sell it legally.

  14. 21/01/2013, Aff wrote

    Our currency is caught in a debt death spiral. More money creates more debt which creates more interest which requires more money. Central banking does this by design. That is all it does. Mark Carney could be replaced by any other goldman employee and it wouldn’t change a thing. They can say this target this thing or the other thing and it doesn’t change a thing. The system is for creating debt and will do this until it breaks down, as all ponzi schemes must in the end.

    The bigger picture is what is to come after the fiat dies a death. Seemingly, if they get their way, globalist powers are pushing for a global fiat electronic currency based on SDRs. All the signs are pointing towards globalist agendas, tighter controls and less freedom. If the govt comes after our gold I won’t be surprised, I can only hope that rational forces overcome the madness once people start waking up and seeing the threat.

Commenting on this article closed

MoneyWeek magazine

Latest issue:

Magazine cover
Going bust

What happens when countries default?

The UK's best-selling financial magazine. Take a FREE trial today.
Claim 4 FREE Issues

Vote in the MoneyWeek Readers' Choice Awards

Vote for your favourite financial services companies in the inaugural MoneyWeek Awards, and you could win a year's subscription to MoneyWeek magazine. Find out more and vote here.