Gold Prices in Major Currencies

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ScottJ
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Gold Prices in Major Currencies

But this time...it's global. For the first time in human history, all world currencies are backed by nothing of physical value. Think about that for a moment. Fiat currencies are losing the faith of the public day by day. We are about to live through the greatest gold and silver rush in history.  -- Mike Maloney

~~ When all currencies make new highs in gold, the real moves will begin -- Mike Maloney (paraphrased)

The US Dollar Price of Gold

Euro Price of Gold

Australian Dollar Price of Gold

Canadian Dollar Price of Gold

Swiss Franc Price of Gold

Great Britain Pound Price of Gold

Japanese Yen Price of Gold

Chinese Price of Gold

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Make sure to keep the bigger picture in mind, and don't get solely caught in the US Price of gold only.  We are nearing a major point lift-off point of a larger super-cycle which coincides with the loss of faith of fiat currencies (end of the Keynesian experiment).  I believe we are on the verge of this giant move back to gold (and silver!).

Edited by admin on 11/08/2014 - 06:31
Bay of Pigs
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You know it...

Nice charts Scott. Always helps to look at it from a longer term perspective.

jackmeoff
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Here is the one that scares me the most.

murphy
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re yen

What makes the yen strong in gold terms compared to the other currencies?

ScottJ
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I am not sure exactly, but I

I am not sure exactly, but I will offer this explanation.

If you look at the x-axis (time in years) for the different price of gold charts, each one varying lengths of times.  Some, such as the Euro have only been around for ~10 years while other currencies have a lot of history behind them.

Looking at the time the Yen spiked (~1980), you can see the gold price for the US Dollar was spiking too.

The dollar was the world reserve currency while the Yen was a currency that probably took the worse end of bad US policy during that time of inflation/high interest rates.  I think the Yen price of gold has a lot to do with the world reserve currency's directional movement... as it reflects the conditions of the world throughout the times...

Hope that makes sense, I am sure there is the real reason... but I am just extrapolating US conditions to Japanese which were probably dependent heavily on US Dollar reserves at the time (as 1971 was the end of the gold standard and the "era of the dollar").

ScottJ
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Euro price of Gold just

Euro price of Gold just touched 1080.73 Euros per oz of gold.

All time high close is 1083.47...

Great Britain Pound price of gold looking strong too relative to it's all time high close (~945)

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Definitely giving support to US price of gold.  I am convinced that the price of gold and silver in US dollars are forming a basae for a major move.  These currencies price of gold shows great strength in the move away from fiat currencies.

qqq62
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excellent thread!

keep up this excellent thread ScottJ!!!!!

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James Turk on the subject a

James Turk on the subject a couple of weeks ago..

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ScottJ
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Great Britain Pound Price of Gold Making New Highs

Price of Gold in Pounds will be making a new all time nominal high at close today.  It's previous highest close was 951.98 Pounds per Oz of gold.  You can see the slightly longer chart here:


Now, to see the last 3 days of the price of gold in pounds, we see new highs being made all the way up to 964.67 (new nominal high) Pounds per oz of gold.

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My favorite website to check different currencies can be found at this fantastic, easy to use link.

http://goldprice.org/spot-gold.html

Eric Original
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Important

I don't know how many Turdlings watch gold in other currencies, but I do and I think it's hugely important. Dollars, Yen, Pounds, Euros, these are all just the same paper with different colored ink on them.

Folks who spend all their time watching cross currency rates, or the Dollar Index, are wasting their time on "noise" IMHO.

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ScottJ
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Agree with Eric

The fact that all major currencies are nearing or achieving new nominal highs when priced against gold signifies the worldwide problem.  We have a fiat-based world, as many of us Turdlings are familiar with, however, we tend to be centered around the problems of individual currencies (mainly the US$ Price of Gold).  While the price of US Gold is important, as the Federal Reserve Note is the world reserve currency, it is imperative to understand exactly as Eric has mentioned above. 

The real story that is being told is all western central banks are controlled by the same influences, and each one of their fiat ponzi schemes are being systematically devalued (as shown vs strength of gold instead of strength vs other fiat currencies (DXY)). 

When all of the major currencies have closed at new highs, watch out, because it will be the ultimate "buy signal" as you have the worldwide fiat currencies breaking to the downside when measured against true safehaven money, gold.

Thanks for your thoughts Eric, well stated.

dropout
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Be International Gold Centric

Focusing in on events will leave you vulnerable to being blind sided!

This is where people are surprised. "Wow! Didn't see that coming!" How many times you here that.

You must lift up your eyes and look to distant horizons to see bad weather approaching, while remaining aware of whats happening in your backyard. This is an excellent thread. Would like to see it continue. Sorry if I sound like I'm preaching to the converted, it's mainly for new precious metal turdites.

Check this excellent international site out for their eerily accurate forecasts;

http://www.leap2020.eu/GEAB-N-56-Special-Summer-2011-is-available-Global-systemic-crisis-Last-warning-before-the-Autumn-2011-shock-when-15_a6679.html

Turdle GG
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The Law of One Price applies

The Law of One Price applies to gold and silver.   

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Law of one price

The law of one price assumes you are dealing with one currency. The point of this thread is that the price of gold is rising against all currencies regardless of the relative performance of such currencies. No sane person will want to exchange one worthless promise for another. There is only one place to go.

Turdle GG
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@Merc

Merc,

sorry, that's not correct.  

"The price of an ounce of gold in U.S. dollars is measured as $/ounce of gold. In foreign countries, the price of an ounce of gold is measured as FC/ounce of gold (where FC denotes "foreign currency"). The exchange rate between the U.S. and foreign countries can be written as $/FC. That's the price (in dollars) for 1 unit of foreign currency. Now, since gold is easily transportable, it obeys the "law of one price". That is, the price in dollars is the same as the price in foreign currency, after currency translation:

$/ounce of gold = $/FC x FC/ounce of gold.

Stare at that equation for a minute. Any time you see the price of gold rise, one of two things must be true. Either the foreign price of gold (FC/ounce of gold) has increased, or the value of the dollar must have declined (i.e. foreign currencies have become more expensive, and $/FC has increased)."

Source:

http://www.hussman.net/html/gold.htm

Turdle GG
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@Merc

You said:

"The point of this thread is that the price of gold is rising against all currencies regardless of the relative performance of such currencies."

The correct part of your statement is that the price of gold has been rising against all currencies.  It's not true to say that this is regardless of the relative performance of the currencies.  The degree to which gold has been rising against any particular currency depends on that currency's performance against the USD.  If a currency has been rising against the USD and the USD price of gold has been rising at the same rate, then the price of gold in that foreign currency will stay constant.   Example is AUD.  The AUD price of gold has gone nowhere for the last 2 years because the AUD has been increasing against the USD.   So, if you are a gold bug in Australia, people will laugh at you and say you've made nothing for 2 years.  

Also, take a look at the CHF (Swiss Franc) price of gold over the last year:

http://www.xe.com/currencycharts/?from=XAU&to=CHF&view=2Y

Flat.  Why?  Because CHF has been rising against USD:

http://www.xe.com/currencycharts/?from=CHF&to=USD&view=2Y

So, if you're living in Switzerland and keep your investments in Swiss Francs, you're getting annoyed that the rest of the world seems to be getting rich through buying gold.

Turdle GG
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@Merc

So, if you account for your wealth only in USD then you are lucky because the decision to buy gold involves making only one judgment: whether the USD price of gold will rise.  

If you account for your wealth in any currency other than USD, then you have a more difficult decision-making process.  First, you have to decide whether you think the USD price of gold will rise.  Then, you have to hedge any gains you make in your investment (by selling USD/buying your currency), because any gains you make in the USD value of gold will be lost to the extent that your currency rises in value against the USD.   If you don't hedge it means you are, by default, making a currency trade (long USD/short AUD) in addition to your gold trade.

This is all because gold, like all commodities, is priced in USD.  Let's call it a benefit that Americans have due to the USD (still) being the world's reserve currency.  

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Euro Gold Just hit New Highs

Euro Gold to new highs.. climbing strong out of the gate on sunday.... back at 1091 euros/oz of gold.  Surely new highs in other major currencies will carry over soon to the US price of gold.  The tsunami is coming.

http://goldprice.org/spot-gold.html

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eurogold is gonna break 1100

eurogold is gonna break 1100 today! nearly there

ScottJ
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Record Euro Gold Closing Price in Store

Looks like an all time high nominal close of euro-gold.  The super-cylce is beginning, and US Gold over $1550....

Inflation is around the corner for those of us in the US (and probably world).  Be prepared the best you can.  The best thing one can do for themselves is to understand.

ScottJ
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Record Highs in Gold/Pound too!

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