California Beach Camp

The rate of gold bullion price increases in the first decade of the 21st century was remarkable and enduring. At the beginning of 2011, we were able to look back and proclaim that gold has risen for ten consecutive years in a row. Historians and commodity experts struggle to identify other commodities that have risen for an entire decade in this manner. Yet, gold finished each successive year higher than the year prior. Rate of Gold Rising With Cheapening Currencies The rate of gold has increased not only relative to itself, but also to significant world currencies. While gold has a relatively stable value, the price of gold bounces around when denominated in various fiat currencies. One event that’s been transpiring since the early 2000’s is intentional currency devaluation. With a global marketplace, countries have sought to devalue their currency against one another. A weaker currency makes for less expensive exports. Cheaper exports can improve the local economy by making consumers of the exports more likely to buy. China, for example, is a huge exporter of manufactured goods, and is well served by lower currency relative to others. These manipulations of paper money only amplify the inherent value of gold, which is resistant to such manipulation. Unavoidably, over time you can more and more cheap currency with the same amount of gold. Rate of Gold In Light Of The Competitive Currency Devaluation It’s significant to witness the effect on the rate of gold as various nations manipulated their paper money. Euro nations were once leading the pack, having devalued the Euro and heightened the efficacy of exports for countries like Germany. England wasn’t to be left behind, and once upon a time the British Pound was beaten down to benefit the Brits. This cycle has repeated time and time again. Currency devaluation has been an all-important goal in Scandinavia, Canada, and Australia. Rate of Gold – Who Can Go Lowest In Currency Limbo? As you can imagine, the impact on the rate of gold is only amplified as the currency war plays out in extremes. The tactics may change, but the goal is the same. First there is a cut in interest rates. Then the powers that be fire up the printing presses and flood the market with more funny money. All of these moves serve to devalue the currency that’s being manipulated. As you can predict with even a small dose of foresight, this is an endless game where I seek to one-up you. I may be in the lead today, but then I lose that advantage next quarter. At some level, this short-sighted approach effectively becomes a races to the bottom. This is why interest in gold and ETF silver products is at mind-numbing highs.