Yesterday, gold hit a new all-time high… That is, if you're a European.
Longtime DailyWealth readers know we encourage folks to take a "world view" of the investment scene – to occasionally view assets in terms of other currencies… or in terms of gold. Stepping outside your own currency gives you a broader perspective on things.
The European perspective on paper money is ugly right now. As we predicted back in December, the value of the euro is plummeting. Many European governments have taken on ridiculous amounts of debt in the past decade, which will continue to shred the value of their "backed by nothing" paper money.
For a picture of this shredding, we present the past two years of the gold price, in euro terms. While gold has traded sideways against the dollar for the past few months, it is soaring against the weak euro… and just struck a new all-time high. The only thing that can stop the uptrend in gold is if Obama and his counterparts in Europe decide to commit to fiscal responsibility. What's that you say? Yes, we agree, gold is a one-way bet.
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