An Island of Stablility With Cat 5 Hurricane Bearing Down On It

The Yen described as a traditional island of safety? Investors will find no safety in any island (safe haven) with a category 5 'monetary' hurricane bearing down on it. People will always view the world according to their biases, so arguing against this assertion tends to be a waste of time.

Don’t let your biases establish your perceptions. If the Yen or any other paper money was an island of stability as suggested, the major and broad currency gold price trends illustrated below would characterize a ski slope rather than growing mountain.

Gold London PM Fixed and U.S. Dollar Major Currencies Index Ratio:


Gold London PM Fixed and U.S. Dollar Broad Index


Headline: Investors Are Seeking Safety in New Harbors

For years, whenever significant political or financial turmoil reared its head anywhere on the globe, investors would turn to the U.S. dollar as a safe haven.

Yet as the chaos in North Africa has grown over the past month, investors have largely shunned the dollar and sought shelter elsewhere. They have turned to other traditional islands of stability, buying Japanese yen and the Swiss franc.

Source: online.wsj.com