Global Fiat Gold Price - Confidence Is Beginning to Fray

The mainstream media continues to focus on the US dollar rally as reinforcement to its safe haven status.

The US dollar index (USDX) strength since November 2009 represents relative strength against major fiat currencies such as the Euro, Yen, Pound Sterling, Loonie, Krona, and Swiss Franc. Since nearly 58% of the USDX is represented by the Euro/US dollar exchange rate, much of the recent strength can be directly attributed to sharp decline in the Euro.

U.S. Dollar Index (USDX)


The safe haven designation of the U.S. dollar, however, is an illusion. While the dollar, as represented by the U.S. dollar index, has clearly rallied against nearly all fiat currencies, it continues to lag behind gold – world’s premier world currency.

A close inspection of the gold price around the world shows the seriousness of the break in confidence in fiat. Not only is the price of gold at or near all time highs in many global currencies but also beginning to acceleration in a non-linear function. It is this higher-order acceleration that warrants serious attention and concern.

US Gold:


Aussie Gold: Australians are concerned!


British Pound Gold: Britons are nervous!


Loonie (Canadian Dollar) Gold: Canadians are nervous!


Euro Gold: Europeans are very nervous!


Krona Gold: Swedes are nervous!


Real Gold: Brazilians are concerned!


Rouble Gold: Russians are nervous!


Swiss Franc Gold: Swiss are quite nervous!


Won Gold: Koreans are nervous!


Yen Gold:


Confidence is a fickle thing in the financial world. One minute is there, the next it is completely gone. As money scrambles into gold (the real safe haven), how long will traders, investors, the global public maintain confidence in a fiat system that is showing clear signs of structural fatigue? How long before the early stage of trend acceleration turn into full blown panic? These are important question to ask, RIGHT NOW.

Awhile back I wrote the following:

Money is a game of perception and confidence. This is the main reason why everything can look so normal, right before the wall of confidence come tumbling down and all hell breaks loose. Martin Armstrong alludes to this rapid progression in his commentary How all systems can collapse overnight.

For further discussion on this topic please review or reread Money - The Subject Theory of Value commentary. The significance of its message has not changed with the passage of time.