This Is What Gold Does In A Currency War
Interest-Rates / Currency War Feb 04, 2015 - 10:33 AM GMTBy: John_Rubino
Australia just fired a serious shot in the currency war by cutting its overnight lending rate to a record-low 2.25%.
With the aussie as a result tanking, local holders of bank accounts and cash are quite a bit poorer than they were at this time last year. But owners of gold are doing just fine. While the metal is falling again here in the US (which is at the moment trying to withdraw from the currency war), it’s up about 20% in the past three months in countries like Australia that are on the offensive.
James Anderson comment •
Thanks for the reminder John. It is good for U.S. centric investors to understand that Gold is money par excellence. All phony fiats eventually bow down to bullion. Fundamentals dictate that every fiat currency has & will continue to lose value against bullion this millennium.
The real winners of the ongoing "Global Race to Debase" are going to be longterm holders of silver and gold bullion. Stack accordingly.
By John Rubino
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