US Dollar, Euro (DM before 1999), Yen and Sterling Depreciation Against Gold Since 1900

GoldCore's picture


Today's AM fix was USD 1,569.00, EUR 1,256.406 and GBP 1,009.0 per ounce. Friday’s AM fix was USD1,570.50, EUR 1,251.79 and GBP 1,005.70 per ounce.

Gold is marginally higher in Japanese yen, flat in U.S. dollars but higher in euros, pounds and other fiat currencies today. Further weakness may be seen in trading today as last week’s 3% fall may lead to follow through selling.

Gold remains higher in all fiat currencies in June and the fundamentals mean that a summer or autumn rally remains likely.

Gold may look for direction from the latest EU summit but financial markets have already toned down expectations of concrete progress and European stock markets are lower and Spanish and Italian debt is again under pressure. The EU meeting will be missed by both Greece's new prime minister and finance minister due to illness.

Speculators Sell While Long Term Store Of Value Buyers Accumulate on Dip

Managed money longs boosted their net longs in gold by 4,962 to 104,646 lots in the week up to June 19 but their positions remain near record monthly lows showing that the speculative froth has been washed out of the market.

Gold bars and coins at Goldcore's London office

The fundamentals remain sound with investment demand, particularly from ETFs, Asian demand and central bank demand remaining robust.

Recent weakness is again due to selling from more speculative elements.

Investors and store of wealth bullion buyers have not been selling – quite the opposite most continue to accumulate on the dip.

Of the small amount of people selling bullion in recent weeks – the majority of those sellers sold as they had to sell due to having financial difficulties. Gold came to their rescue as it is, for many, one of the few liquid assets that they can sell in order to pay down debts.

Those with a long term perspective will continue to be rewarded (see chart above) as currencies continue to be debased and devalue versus gold.

Today, fiat currencies throughout the industrial and non industrial world are vulnerable to further devaluation.

There is indeed the real risk that the gradual decline in the value of fiat currencies seen in the last 100 years accelerates.

A coming global monetary crisis will likely result in a massive flight to gold.

In historic times, it is worthwhile having an historic perspective.

For breaking news and commentary on financial markets and gold, follow us on Twitter.


Reuters - Gold steadies after weekly drop; EU summit eyed

Reuters - Asian gold bugs eye price weakness, Central Bank buying 

Bloomberg - Central Banks Commit to Ease as Threat of Lost Decades Rises 

Mineweb - Australian gold output falls for 3rd straight quarter 

Reuters - China urges calm after Syria shoots down Turkish jet 

GoldSeek - C Ministry of [Un]Truth

Zero Hedge - Buckler: Keynesian Religion As World War... And The One "Good" Thing About It 

Zero Hedge - As RBS' ATM "Glitch" Enters Fifth Day, The Bailed Out Bank Issues A Statement 

Market Oracle - Gold Investors Gaining from Economic Exposés and Realities 

FT - The Fed’s Second Best Solution

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Mike Cowan's picture

That's the coolest thing I have ever seen. Burn in hell central banks.

All Out Of Bubblegum's picture

 ”By the control of its rate of interest and of its issues of notes it would be able to exert great influence upon the money market and upon public opinion. Such power is not now possessed by any institution in the United States. “ -The Banking Cartel, 1906

disabledvet's picture

You all are staring at one of the biggest declines in gold prices in history that's "buyer beware." While i agree with your basic PREMISE...the fact of the matter is the ONE thing that crushes the price of gold is a total collapse of "the biggest currency union in history" (where THOUSANDS OF TONS of gold reside...and will be forced to be sold once the currency Union tanks) followed up just as importantly by a MASSIVE ARMY ARRIVING/EXISTING IN does exist in Europe and is arriving in the Middle East En Masse where the bulk of the rest of the gold resides! It WOULD BE a good time to create a gold back reserved currency in such a condition however. Be interesting to see should prices really come down whether or not it happens of course.

honestann's picture

You are so incredibly delusional!  The failure of a large currency, and the remainder of endless failed predators DBA government, will drive everyone to convert any scraps of paper they have into gold, silver and other physical assets (best of all, assets they can hide and protect themselves, and have no counterparties whatsoever).


eatapeach's picture

Just doing the math for "shave and a haircut, two bits", I find silver to be at a very good spot for buyers.

Kitler's picture

The angry mobs at Zero Hedge are once again completely missing the true nature of the wonderful "Works of God" that Messieurs like Bernanke, Dimon, and Blankfien have selflessly embarked upon.

Mark 10: 25

25 It is easier for a camel to go through the eye of a needle, than for a rich man to enter into the kingdom of God.

Sure... Ben, Jamie, Lloyd and others will almost certainly die wealthy beyond all imaginable belief... but they do so only to help their Christian bretheren impoverish themselves into a better afterlife in Heaven.

Let's be fair... they've done wonders for home affordability already haven't they?

Jungle Jim's picture

But when will the manipulation/suppression end? When will the paper and physical prices decouple? When will we see "true price discovery"? When will the market value of PMs "slip the surly bonds" and finally soar, like everyone has been saying they would for years?

Some of us are running out of time. Some of us are fast approaching the day when we will have no other way to pay our loved ones' mounting medical bills, or our own rent and utility bills and car payments and grocery bills, than by selling our PMs for FRNs, as philosophically distasteful as that is.

My Dad's nursing home costs $5,700 a month, for his room and board alone. We've been on 100 percent private pay for 43 months. It has already drained away over a quarter of a million dollars from us. I'm down to my last $20,000 in paper money. Most of the remnant of my "wealth" is in PMs now. But the nursing home won't take gold or silver coins or bars. 

We don't have three to five to ten years. We have maybe three months, with luck.


tonyw's picture

Jim, it's a shame you are in this bind but:

what did people do in "the old days"?

$5,700 per month is much more than most of the world makes in earnings.

You need to think further out than three months, what happens if you dad lives for another 24 months, 36 months...

What happens when you run out of money?


No, I don't know any better than you when the the manipulation/suppression will end, it's been going on for a long time so could go on for much longer. Things often take/last for longer than you could imagine and the results can also be worse than you imagined.

Jungle Jim's picture

Well, in the "old days" I guess people just died when their time came. Or they got left out on the veldt at night, or sent floating off on little ice floes. I think that was how the Masai and the Inuit dealt with it. The Cossacks had some rule about when you could no longer get on your horse, but I forget the details.

 Dad's 91, going on 92. I kept him OUT of the nursing home for as long as I could, because I knew what it would cost. But he passed the point where he could be cared for at home about four years ago. He has really severe dementia. Sometimes they call it Alzheimer's, sometimes they just call it dementia. I wouldn't say he is quite a vegetable, but it's close.

He is also completely bed-ridden and 100 percent incontinent. Before anyone suggests (as some have), "Pull the plug," he is NOT on what is called life support. There is no plug to pull. In fact, he can still usually manage to feed himself. He has a good appetite. He arguably eats better than I do. I eat everything cold, mostly out of cans. Even soup. 

He's on all the latest cholesterol-lowering and blood-thinning and heart-regulating meds (which cost additional hundreds per month), so his heart rate is slower and more regular than mine, and his blood pressure is MUCH lower.

I'm considered too thin by most people, but I have the blood pressure of someone who weighs five or six hundred pounds. I have a prescription for it I get refilled once a month. It's pretty cheap, which is a good thing, because I have zero health insurance for myself. Otherwise whatever is wrong with me goes untreated, except for whatever folk remedies and Boy Scout first aid tricks I can come up with.

I was going to buy a good health insurance plan, and get a bunch of medical conditions I have (including two which have needed surgery for years) treated. That was a bit over a quarter-million dollars ago. Maybe closer to a third of a million dollars ago.

There is no other family. I'm it, the whole show. I repeat: no other siblings or family members to pitch in or lend a hand in any way. This is not some retro Waltons kind of deal with generations of extended family all living harmoniously under one roof.

 Even if  his presently uninhabitable house were set up for the care of an invalid (which it is not, and the remodeling needed for that would cost tens of thousands of dollars we no longer have), having around-the-clock, in-home nursing care would cost more than what the nursing home costs.

I should mention that I have no income now. Nobody would hire me to wash dishes. I'm living, and paying for Dad's care, strictly out of whatever there already was four years ago, which seemed like a lot, then, for about five minutes. But it's all going out, and nothing's coming in, except for a pitiful pittance Dad gets from Social Security, which is a drop in the bucket.

I get zero, zip, nada from the government myself. I'm not eligible for a nickel, and never have been, except for about six weeks' worth of unemployemt in the spring of 1980, oh, and some college student loans in the early Nineties, long since repaid in full (before anyone starts screaming about his wasted tax dollars). I wouldn't even waste my time applying now.

Maybe I should be a full-time, 24-7, round-the-clock nurse all by myself? Anyone suggesting that doesn't know me at all. I am just barely able to take care of myself now, most days.

For one thing, I am really, intensely phobic about germs and things, so that it's pretty hard for me just to visit the nursing home or the hospital. It's actually crippling. I'm locally infamous for it, a sort of local joke.  I'm pretty used to being laughed at.

I'm one of those guys who uses folded paper towels to open doors with, and even carries a pocket full of nitrile gloves around, and has to go home and put on new clothes if anyone touches him or spills anything on him. I quit going to the movies or eating out years ago because of it. I have no laundry facilities. If a garment of mine gets dirty I have to wear it dirty indefinitely, or replace it.

But, hey, I've still got me some shiny, jingly physical  PMs buried way out back yonder someplace where the strange green reptiles crawl. Some might even call it a lot, an almost literally biblical amount. (Think in terms of talents and minas. See: Flavius Josephus.) So, I've still got that going for me. The question now is, "How long before I have to liquidate them too, probably at a loss, maybe a big loss?" I didn't buy quite at the top, but nearly. Most of the Ag at about $32 or so, and the Au at all levels from $1400 to $1700.

Well, I do have some guns too. Fairly good ones. I once had some skill with them, when I had a place to practice. I was a "prepper" myself, you see, or was trying to be one. The main thing holding me back was a lack of land. Hm, I wonder how much of that a quarter or a third of a million would have bought?

I guess I might sell the guns first, then the PMs. The survival food I'll just eat, I guess, if I can figure out how to prepare any of it without heating it. My residence no longer has a functioning kitchen in it. No stove, no microwave, not even a toaster oven or a coffee maker. Though I do still have running water, sort of. if I want a cup of hot coffee I have to go out for it. Well, the fridge still works.

I'm about at the point where those escaped Civil War POWs were at, in Mysterious Island (1962), when their balloon was going down fast in the ocean and they were throwing everything -- food, guns, ammo, you name it  -- overboard, anything to keep that balloon in the air one more minute.

(Start at about 6:47 on the clock counter.)

Well, I didn't mean to go on quite this long about it. I just wanted to head off any possible misunderstandings of the situation on the ground here.

I don't suggest, expect, or even believe in any government remedy or solution. Except that I'd like to see the silver and gold price manipulation/suppression fail in a big, spectacular way. I mean like when it started to rain on Arrakis at the end of the David Lynch version of Dune. That might just almost pull my roasting chestnuts out of the fire.


Uber Vandal's picture

Thank you Deficit Reduction Act of 2005.

That made it much more difficult for the elderly to transfer assets before qualifying for Medicaid coverage of nursing home care. With enactment of the law, advocates for the elderly said that nursing homes would likely be flooded with residents who need care but have no way to pay for it, and that in states that have filial responsibility laws, the nursing homes might seek reimbursement from the residents' children.

At this time, 29 states have this legislation:

Alaska, Arkansas, California, Connecticut, Delaware, Georgia, Idaho, Indiana, Iowa, Kentucky, Louisiana, Maryland, Massachusetts, Mississippi, Montana, Nevada, New Hampshire, New Jersey, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Virginia, and West Virginia.


Jungle Jim's picture

Yeah, there is that. That's more or less the snare I'm caught in. They got me real good. And so, yet another generation of my family goes from riches to rags.

At least I'll be the last they'll ever get. The last of my bloodline, I mean. I have no kids. I was not about to breed any offspring until I was dead sure I could keep 'em out of the public school system, and raise them the way I thought proper.

That day never came. I grew old and gray and bent waiting. Then, at the end, the one hope that had been dangled before my eyes, like the keys to a condemned man's cell, for many decades was snatched away, with a laugh.


disabledvet's picture

i did see that not even Obamacare could figure out how to pay for long term care insurance. kinda scary if you think of it.

eatapeach's picture

$5700 is a load of money. Maybe you could build an add-on with the remaining $20k. The manipulators have a lot of power.

Dingleberry's picture

I see gold coins with "$20" as a face value.  The coins were actually worth 20 bucks at one time.  Look what it is worth now, still with "$20" buck face value.  That pretty much says it all....

eatapeach's picture

I showed the cashier at a local filling station a gold sovereign and said "this is money". He said, "anywhere!".

Silver Garbage Man's picture

A 100 acre farm worth $2500 100 years ago sold for 1.25 million this year. It is the same pile of dirt it was then.Paper is absolutely being diluted.Do you want to trust your future with paper or hard assets? Looks like silver is the place to be today, and for years to come .Just wait until the manipulation ends. If you don't think silver is undervalued think about this.... A billion ounces on the planet , and it cost me 4 ounces(equivalent) to put gas in my truck so I can drive to work for two weeks. Maybe a half ounce would be a more reasonable trade ($240 an ounce)!!!

falak pema's picture

ha ha, the fiat pump is pumping air according to this. Cavitation blues!!!

MrBoompi's picture

This chart highlights the corruption of the Federal Reserve and central banks around the world.  An uneducated person might look at the chart and think these currencies could not possibly be devaluated any further.  But configure a new chart, starting in 2008 with the new baseline being 100, and we'll know for sure.



disabledvet's picture

a simple dollar price for the gold would do. start in the Depression where it was around 35 bucks an ounce and proceed to where it is today...around $1600. about a 500 hundred fold increase. "very not bad" as the Chinese say. Having said that the DJIA went from about the same price at the low (35 i think it was) all the way to 12,000 where it is today. the whole "all paper money is valueless" thesis is so ridiculous as the be nothing more than the sales pitch the author claims all anything paper based is. in short "it devalues the very valuable gold with bad thinking" thus making it seem less valuable than it may in fact be. but i'm a guy who believes in "price theory" which is a nice way of saying "price discovery is an irrelevant exercise" as there always exists a price. in the case of gold "$1600 bucks an ounce, give or take." hence...



Paper sucks,

you Wall Street fucks!

I'll see you vampires in the sun,

with my loaded silver gun.

Yer goin' down in flames,

from Lower Manhattan to the Thames.

Your paper is I know not where,

I'd rather shit my underwear!

For, be there bull, or be there bear,

silver is the suit I wear!

(With gratitude, and apologies to Dr. Seuss.)


The only paper I own is the stuff I wipe my ass with. Market paper is worthless, because I cannot do a good job of wiping my ass with it. Gold was worth $28.00 an ounce when I was a kid. Silver was worth whatever was printed on the coin you spent. Any one think those days are coming back? All of the lying bum fucking aristocracy of the Age Of Paper Power can burn in their paper suits soonest. I won't even bother pissing on them to put out the flames.

I collect gold, silver, lead, copper, real dry powder, food, tools, diesel fuel, and other useful commodities. There is a community of folks all doing the same, so skill sets and extra eyes and hands can guard each others sixes, and create a Jim Morrison type of moment - "break on through to the other side, break on through to the other side, YEAH

"HFT ain't good for me. 

Credit defaults far as the eye can see.

CDS's gonna make some messes.

Boo hoo hoo as thieves confesses.

TBTF gonna fall off a cliff - REAL NEAT.

Wall Street is a bunch of fucking dead meat.


Banks used to be so overleveraged bold.

Now, they're layin' bankrupt,dead and cold.

Gonna be nothing but prepper people,

all the rest gonna be surprised fucked up Sheeple.

God bless this mess.

I must confess.

I'm a fucking poet,


and didn't even know it.





Hulk's picture

For the whole world to see...

skistroni's picture

I'm in Greece. Do you know any reputable gold/silver dealer in Europe that can ship internationally?

NIRee's picture

Try this out

I recommend using google chrome with translation built in since it is only in german.

It is possible that alot of the dealers have maxed out their VAT quotas for Greece so you might have to pay a tad more but it is still while worth it.

Lionhead's picture

skistroni, Yes, I do. James Turk over at Gold Money. You can find his website easily. You can also call your local & US dealers for a recommendation if Gold Money isn't able to help you. On second thought, avoid the US completely; you may run into banking wire transfer snags with large currency amounts. Treat the US as a banana republic. You don't want your currency hung up in some US Treasury dragnet. Good Luck to you!

falak pema's picture

goldman sachs! of fifth avenue sucks.

Nage42's picture

The CME is the executioners axe that we can drop on people betting against fiat.

Of course it's systemically important... hard to take of fingers, or heads, of people you don't like without it!


ilovefreedom's picture

Warren Buffet: Gold is worthless, so long as you can find productive investments that far outpace inflation and currency depreciation.


Problem is... there are fewer and fewer productive investments that outpace the rising tide of losses.

Random_Robert's picture

"In historic times, it is worthwhile having an historic perspective."


Try telling that to all the algo-HFT and TA-driven momo's out there... They're just too busy selling the dips and buying the ramps to be bothered by not being the last one out of the trade before it turns...


Isn't it interesting that in the face of massively declining futures volume, and in the face of record thin margin generating ability, that the CME Group was recently added to the US government's illustrious "Systemically Important Institutions" list...?


Why on God's green Earth would a lowly clearing broker for commodities futures contracts be systemically important to the operations of the US government? And more importantly, why am I the only one asking the question?


Where is Bloomberg and the WSJ?  Hell, where is Matt Taibbi on this question? 





Snidley Whipsnae's picture

Random Robert... "Why on God's green Earth would a lowly clearing broker for commodities futures contracts be systemically important to the operations of the US government?"

The PMs paper suppression game has to continue until it cannot... Otherwise the fiat currencies of the various Western soverigns/CBs look horrible (which they are)...

Meanwhile SCO countries, and some that are not SCO, stock up on cheap PMs while paper suppression proceeds...

The new currency/currencies to be, at minimum, referenced to PMs or some basket of commodities that includes PMs and soverign currencies...

So the game continues while China opens currency swap lines with all that get in line; avoiding conversion to dollars... And other soverigns are jumping on the 'avoid the dollar' boat by opening swap arrangements with each other...

Still no posts here about what is going on in the Mid/Far East? Let's talk SCO and what they are up to... Hey, we know that Greece and other pigs are in the crapper... soon to be followed by US banks that have not servered ties to EU banks...



SHRAGS's picture

The Age Of Inflation (1964) by Jacques Rueff now available on scribd for a long term history lesson on the debasement of currency.  There are no physical copies available for sale, just a few copies in libraries.

Pladizow's picture

The price on the cover says it all!

fiddler_on_the_roof's picture

you don't know what you are talking. $1.45 is which year's dollar.

I would love to see people like you panic, when paper Gold price crashes to zero and you sell at the worst of times to strong hands.

boogerbently's picture

Paper gold can't crash to zero unless GOLD crashes to zero. What are your "mathematical" approximations ot THAT happening?

lasvegaspersona's picture


surrender, you are surrounded by FOFOAist...

mrktwtch2's picture

remember you gold bugs..if you bought it in 1980 at 800 it hass to hit 2440 for you to break even..(inflation adjusted dollars) and in that time the spx has gone up 1100% despite the 2 bear which is the better investment??..last time i checked no stores accept payment in

Uber Vandal's picture

Remember..if you bought NFLX in 2011 at $298 it has to hit $298,000,000,000 for you to break even in 32 years (inflation adjusted dollars).

Last time I checked, no stores accept payment in NFLX


lasvegaspersona's picture


you keep thinking that way...after all we can't eat it and it just 'sits there' and absolutely no one wants any now....except curiously several central banks and China.....and a few other countries....oh yeah and all those folks in India...and...nevermind...if you do not 'get it' too bad for you 

But let me say loudly, when you are complaining my 'outrageous windfall profits' soon to be seen....I urged you to get some...there...duty done..

akak's picture

Anyone who trots out yet another anti-gold hitpiece with the stale and disingenuous line "Those who bought gold (at its price peak) in 1980 ...."
has just instantly discredited themself from being taken seriously.

jimmyjames's picture


Hey AK-how do you like that deflationary trade today?

akak's picture

Well, since I am not a trader, and did not buy nor sell anything, I lost nothing in whatever "deflationary trade" to which you are referring.  And at the risk of causing offense, such remarks smack of RobotLemmingism.

jimmyjames's picture

I lost nothing in whatever "deflationary trade" to which you are referring.  And at the risk of causing offense, such remarks smack of RobotLemmingism.


Maybe you need to lighten up a bit-

I was referring to how gold traded in a deflationary scenario today and like it has several times in the past few weeks-when risk is on-

jeff montanye's picture

indeed.  gold is sometimes both a risk on and a risk off trade.

SilverRhino's picture

And those who bought in 2000 at 250 or so avoided the tech implosion and the housing bubble and made 650%.   Not bad

boogerbently's picture

And those that switched their entire 401 to gold in Oct. 2008.....

beentheredonethat's picture

Simple rule- dont buy gold as an investment, buy as an insurance policy. So when all the banks are going to hell and TSHTF appears imminent, own gold. In my investing lifetime this would be 1972, 1978, 1987, 1990, 2001, 2007, 2012. So far 4 out of 7 times in that period (and we will see on the 7th) you would be well compensated for gold holdings.

We all know when one of those times is here. It is usually obvious to any reasonable invsestor.. '73 nixon price contols/oil shock, '78 iran revolution/oil shock, '87 stock crash, 90 invasion iraq/oil shock, 2001 sept 11 attack, 2007/8 lehman/subprime. 2012 europe meltdown/obama wealth confiscation.

The '87 crash and recovery happened so fast there was no time to buy gold. So this would get you a 70% hit rate. I can honestly say there was no time in the 1990's I ever thought to buy gold. Long term capital and the asian crisis went by with almost no impact to my businesses other than some cnn news coverage.

BOTTOM LINE: IF you think you dont need an insurance policy right now then get your head examined, and let Etrade and Merrill Lynch invest your money for you.

jimmyjames's picture

.so which is the better investment??..last time i checked no stores accept payment in


Yes-always keep in mind "stores" don't except gold-

This will keep you dipshits out of our hair-

edit: forgot to ask--did you adjust the S&P for inflation as well?