Gold Is the World’s Premier Currency, According To The Markets

There is so much happening now that any thought other than self protections is madness. The dollar is no safe haven. Gold will trade at and above $1650.

Jim

Russia now suggests that they could one day join the Euro. This commentary came only days after they had announced that they have quit the dollar. "Yes, there are problems", as the headline below suggests that the size of the rescue package could be increased to restore confidence in the Euro. Apparently, the fact that nearly all western nations are defaulting on their debt through currency devaluation still makes fiat (Euro) an attractive alternative.

Headline: Putin: Russia will join the euro one day

Speaking at a conference in Germany the Russian prime minister, who is in the country for talks with Chancellor Angela Merkel, said he was convinced the euro would stabilise and strengthen despite the current sovereign debt crisis.

He said: "Yes, there are problems. But the economic policy of the European Central Bank and of the governments of leading European economies ... convinces me that the stability of the euro will be ensured."

Headline: ECB's Weber Says Europe's Rescue Fund Could Be Increased If More Needed

European Central Bank council member Axel Weber said governments can increase the size of the European Union-led bailout fund if necessary to restore confidence in the euro.

“Seven hundred and fifty billion should be enough to assure the markets,” Weber said at the German embassy in Paris late yesterday. “If not, it will have to be increased.” In a worst-case scenario, the fund would need an additional 140 billion euros ($187 billion), an amount that would not jeopardize the survival of the euro, Weber said in Berlin today

Headline: European Banks ‘Nearly Bust’ If Euro Collapses, Evolution Says

The European banking system would be “nearly bust” if the euro were to be abandoned which means the 16-member currency “cannot and should not go,” Evolution Securities Ltd. said.

“If the euro is abandoned, and we go back to the peseta, lira, escudo, drachma etc., devaluations would follow immediately,” said Arturo de Frias, head of bank research at Evolution in a note to investors today, adding the industry is a “great buying opportunity.” Devaluations mean write-offs “of a size that would render the whole European banking system completely insolvent.”

The markets trends, rather than fancy rhetoric, clearly illustrate what Jim describes as a state of self preservation in the currency markets. Gold has once again stepped into the confidence vacuum as the world’s premier currency.

Key points of the following trends
(1) The fiat price of gold is rising in all global currencies
(2) The stronger fiat currencies are revealed by those yet to set new relative highs and lower angles of ascension.
(3) Gold has been the world’s premier currency since 2000-2001. This is a fact that won’t be universally recognized until nearly the end of gold’s price adjustment.

US Dollar Gold:


Yen Gold:


Mexican Peso Gold


Euro Gold:


Canadian Dollar Gold:


British Pound:


Australian Dollar Gold:


Swedish Krona Gold:


Swiss Franc Gold:


Rouble Gold:


Real Gold: