Political Metals

News of physical gold priced in Euro and Swiss Franc hitting all-time highs was all over the media after Friday’s trading. What’s not making it into the news is that gold priced in several other major currencies has already surpassed their all-time highs over the past few weeks. The chart below shows this critical event for the Argentine Peso, Brazilian Real, Euro, Indian Rupee, Indonesian Rupiah, South African Rand and the Swiss Franc.

With the coordinated quantitative easing by central banks, investors and savers alike are flocking to gold as a preferred  store of value over fiat currencies.

As the race to debase picks up steam, other major currencies are not far behind their all-time nominal highs.  The chart below shows this critical event is near for the US Dollar, Australian Dollar, New Zealand Dollar, Singapore Dollar, Malaysian Ringgit, British Pound, Chinese Yuan, Russian Ruble and Japanese Yen.

Governments of the world are trying to solve a debt crisis by adding more debt. Escalating fiscal deficits only increase the burden on central banks to print more money. As long as the world is caught in this circular loop of debt and easy money, all fiat currencies will continue to depreciate against gold, the ultimate store of value.

Take a look at how fiat currencies globally performed against gold & silver in the first three quarters of 2012. The chart below shows how many units of your national currency was required to purchase one ounce of gold & silver on January 1, 2012 compared to September 30, 2012.

Compiled from data at GoldSilver.ocm

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And this is how fiat currencies globally performed against gold & silver over the past 12 years (since the bull market in PMs). The chart below shows how many units of your national currency was required to purchase one ounce of gold & silver in January 1, 2000 compared to September 30, 2012.

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