Tuesday, October 6, 2009

Gold Rises in U.S. Dollars But is Down Significantly in Other Currencies, The Real Gains Were Elsewhere

I plotted the relative price of gold in 5 major currencies (U.S. dollar, Euros, Australian dollars, Canadian dollars, and Brazilian Reais). Gold bugs may not like the results. The chart below shows the performance of gold since January 2 2009:

(please click to view)

While gold has gone up +17% in U.S. Dollars and +9% Euros, and is almost flat in loonies, this year gold it has actually lost -8% in Australian dollars and -18% Brazilian Reais. To those who tell you that gold was the place to be this year, the real place to be invested was elsewhere. In U.S. dollars it's all funny money and phony gains.

We are back to something we have raised several times here, that the markets having gone up in the U.S. is an illusion, and so is gold for hundreds of millions of folks in other parts of the worlds. Everything is relative. In the meantime, the value of houses in the U.S has plumetted. Imagine the real losses.

Protect your investments!

Stumble Upon Toolbar

No comments:

Financial TV

Blog Archive

// adding Google analytics