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US Dollar, Euro (DM before 1999), Yen and Sterling Depreciation Against Gold Since 1900
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.
NEWS
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
»
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I own a Store and I certainly DO accept Gold. And quite possibly Silver too! I have a very accurate scale!
Hey, Karl Denninger, take your worthless compromised ass back to The Market Ticker and ban a few more people.
That's a wonderful insight and it's so funny, too! I've never heard anything like it before. Keep up the great work!
Ahh but you don't get it, you see the "global elite" are controling everything and we are all going to trade in our PM's when the government's that we don't trust today, replace the USD/EURO fiat system with a metal based system which we will trust will not be manpulated..
That was the high that was hit after 10 years of rising interest rates and rising inflation, that followed 30 years (post-WWII) of financial repression with negative real rates following the war to help pay off the debt.
If you're going to use the peak point from cycle to cycle, you have to use it each time. Let's see what the high on this cycle and then you can compare 800 to that number.
In addition to what zaphod has said, let me say that you cannot take the price on one day back in 1980 as the marker because that would be like using the temperature on one day of the year to make a case for climate warming or cooling. The average price in 1980 was $612 and for the month of January 1980 when it hit $835 the average was only $675.
Gold has kept pace with inflation but more importantly the fiat crap we save in hasn't. If you left a pile of silver in your drawer back in the 70's or eighties you can still buy the same amount of fuel that you could back then without worrying about bank account fees, taxes etc.
And then let's not repeat the need for an audit of Fort Knox which is resisted, the daily manipulations, the growing pace of central bank accumulations etc.
To all you gold and silver bashers all I can say is, you are doing a wonderful job of screwing yourselves, so keep going.
one might also compare the dow and gold in 1965-72 to now: 1000/35 vs. 12500/1580, gold return a bit less than 4x dow return, ex dividends. dividends are not inconsiderable over long periods. 3% yield in 1965 is 38% on cost by 2012. however the important point is:
the little (only a cube of a tennis court) yellow one is catching up. where will they meet? unknown, but meet they will.
don't forget the golden rule.
http://covert.ias3.com/expose/
Do unto others, then run like a "mother!"