Posted on 05/21/2013 6:34:09 AM PDT by blam
8 Currencies That Could Tank As Commodities Collapse
Joe Weisenthal
May 21, 2013, 7:20 AM
A big story this year has been the decline in commodities.
That's bad news for countries and currencies that are closely tied to commodities.
In a note, Sebastien Galy has a quick rundown of what currencies are associated with what commodities:
* Aussie Dollar : aluminum, coal & wheat
* Canadian Dollar : oil and wheat
* South African Rand : coal & platinum
* Chilean Peso : copper
* Mexican Peso: oil & silver
* Russian Rubel: oil, nickel, platinum, wheat
* Brazilian Real: oil
* Norwegian Kroner: oil
(Excerpt) Read more at businessinsider.com ...
Canada has a ton of oil, and so does Russia.
There will be a major war before eight world currencies collapse. Gold will drop in half...and then skyrocket.
The US dollar isn’t listed because it is already worthless.
Common Sense tells me that Gold and silver prices going down as the US Government flagrantly prints US dollars (backed by essentially nothing) doesn’t make sense.
This is not universal across commodities:
http://money.cnn.com/data/commodities/
(It’s best to use the one year chart graphic at the top for different commodities, to see change over time.)
My argument is that we are seeing both deflation in some products at the same time as inflation in others. An odd thing to watch, but noticeable even in retail prices. For example, in grocery stores, many products have increased an entire dollar per unit overnight, while at the other time, other are discounted to “fire sale” prices.
Neither can this be blamed on seasonal products, whose seasonal fluctuations are greater than normal, for example, one and a half potatoes for a dollar one week, then ten pounds of potatoes for a dollar the next week, then back to one and a half potatoes the third week.
But some processed products are behaving in a fickle manner as well. Products that should have very stable pricing as they are less perishable.
The most stable are products which have long been very overpriced, such as pharmaceuticals.
Commodities won’t be collapsing...we just heard there is a housing boom again. :)
I am living off of the Thai Baht. The dollar tanking affects how I do things.
For example, back in 2009 I could use my USAA ATM and get 20,000 baht (about $600), last month I could only get 17,000 for about $600.
3000 baht is approximately $100. I am forgoing a few beers based on the exchange rate.
Would suspect the greater downward pressure on gold would be from countries central banks selling off some of their gold. Its happened in the past and its a great time to move in during the narrow lower price window.
Yes so true. Our dollar is tied to consumer spending. LOL!!
I'm thinking that the US Government is "investing" fiat dollars in futures markets to sell gold and silver they don't have
Interesting. Explain how that happens.
Markets have both buyers and sellers. Farmers growing corn or mining companies producing gold can sell their product NOW, before harvest time, and deliver that product when the settlement date arrives. Buyers wanting corn (Cereal producers) or gold can buy the product NOW, at today's price, and take delivery as of the settlement date. Selling Speculators, such as our government selling gold they don't have, must REVERSE their NOW action and buy contracts back (at whatever price it is at the time) on or before the settlement date.
I suspect that governments printing fiat money can get away with losses ... for a while.
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