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This Is What Gold Does In A Currency Crisis, Euro Edition
Zero Hedge ^
| 1-23-2015
| Tyler Durden
Posted on 01/23/2015 1:19:26 PM PST by blam
Tyler Durden
01/23/2015
Submitted by John Rubino via Dollar Collapse blog
Yesterday the European Central Bank acknowledged that the currency it manages is being sucked into a deflationary vortex. It responded in the usual way with, in effect, a massive devaluation. Eurozone citizens have also responded predictably, by converting their unbacked, make-believe, soon-to-be-worth-a-lot-less paper money into something tangible. Theyre bidding gold up dramatically.
(snip)
(Excerpt) Read more at zerohedge.com ...
TOPICS: News/Current Events
KEYWORDS: currency; dollar; euro; europeanunion; gold; goldbugs; goldprice; kerrash; tylerdurden; tylerdurdenmyass; zerohedge
These Europeans are silly, eh? Everyone knows you can't eat gold.
1
posted on
01/23/2015 1:19:26 PM PST
by
blam
To: Jet Jaguar
2
posted on
01/23/2015 1:19:56 PM PST
by
blam
(Jeff Sessions For President)
To: C19fan; cuban leaf
3
posted on
01/23/2015 1:22:20 PM PST
by
blam
(Jeff Sessions For President)
To: blam
These Europeans are silly, eh? Everyone knows you can't eat gold. Aw crap. Sarcasm? Gold ain't for eating. It is for asset protection. But I sense...you know that.
4
posted on
01/23/2015 1:27:40 PM PST
by
Bloody Sam Roberts
(Life and death are but temporary states. But Freedom endures forever.)
To: blam
No, but you can use it to fill teeth.
5
posted on
01/23/2015 1:45:38 PM PST
by
TBP
(Obama lies, Granny dies.)
To: blam
Total value of all gold ever mined is about $8T.
Total value of all fiat currency (cash) is about $5T.
Total what most people call “money” is about $60T.
6
posted on
01/23/2015 1:48:19 PM PST
by
ctdonath2
(Si vis pacem, para bellum.)
To: ctdonath2
Total value of all gold ever mined is about $8T.
Total value of all fiat currency (cash) is about $5T.
Total what most people call money is about $60T. Interesting numbers! Could you provide links for further reading on this?
To: blam
This Is What Gold Does In A Currency Crisis, Euro Edition That's what everything does when your currency goes down.
If I find a chart of gold priced in Swiss Francs, can I write an article for Zeroclue? I mean hedge.
8
posted on
01/23/2015 3:07:02 PM PST
by
Toddsterpatriot
(Science is hard. Harder if you're stupid.)
To: blam
Let's put that chart into a more reasonable long term perspective:
9
posted on
01/23/2015 3:13:40 PM PST
by
Yo-Yo
(Is the /sarc tag really necessary?)
To: Yo-Yo
maybe that happens, but if we get major deflation, gold is just another asset class that shrinks in price.
10
posted on
01/23/2015 3:42:28 PM PST
by
expat2
To: blam
For those who invest in gold, it is also essential that they invest in lesser specie and other *fungible* commodities as well. The reason being that during very hard economic times, while gold will almost certainly still be respected, *conversion* of gold may be extraordinarily hard.
Say you gold exists in ounces. While shopping you want to buy an apple. Were you to try to buy an apple with an ounce of gold, you might have to exchange it for a truck load of apples.
But with a quarter ounce of silver, you might be able to buy a bushel of apples. With a pure copper slug, maybe a single apple.
So think of the other metals as “change”. Still a good reason to have it.
11
posted on
01/23/2015 3:52:37 PM PST
by
yefragetuwrabrumuy
("Don't compare me to the almighty, compare me to the alternative." -Obama, 09-24-11)
To: blam; jiggyboy; PA Engineer; TigerLikesRooster; Cheap_Hessian; CJinVA; Jet Jaguar; ...
To: Jet Jaguar
I am not sure how this really differs from the slide of the euro versus the Swiss franc after the Swiss National Bank unpegged their currency from the euro. Gold stayed the same in terms of its value, but the number of euros it takes to buy that steady amount of value jumped — because now the Swiss won’t be inflating their currency to keep it pegged to a devaluing euro. This is not a knock on gold, it does question the “insight” here as this is just the euro’s slide.
13
posted on
01/23/2015 5:49:41 PM PST
by
bajabaja
(Too ugly to be scanned at the airports.)
To: ctdonath2
total us debt and liabilities
$18 +127 trillion = $145 trillion
14
posted on
01/23/2015 6:01:43 PM PST
by
bert
((K.E.; N.P.; GOPc.;+12, 73, ..... Obama is public enemy #1)
To: BwanaNdege
Look up “value of all gold ever mined”, “value of all currency”, and “world M3”.
15
posted on
01/23/2015 6:17:40 PM PST
by
ctdonath2
(Si vis pacem, para bellum.)
To: Yo-Yo
Then there's the 10 year chart.
16
posted on
01/23/2015 6:25:35 PM PST
by
DeaconBenjamin
(A trillion here, a trillion there, soon you're NOT talking real money)
To: Jet Jaguar
What if the “powers that be” are intending to wipe off nations debts by ‘starting over with all currency required to be backed by gold’....?
Might explain why sovereign nations have been buying gold left and right.
17
posted on
01/23/2015 7:26:12 PM PST
by
caww
To: yefragetuwrabrumuy
But with a quarter ounce of silver, you might be able to buy a bushel of apples. With a pure copper slug, maybe a single apple.
That is why I like
War Nickels. They don't have the wear of silver dimes and are easily recognizable.
18
posted on
01/23/2015 8:16:59 PM PST
by
PA Engineer
(Liberate America from the Occupation Media.)
To: bert
total us debt and liabilities
$18 +127 trillion = $145 trillion What are total US assets?
19
posted on
01/23/2015 8:43:05 PM PST
by
Toddsterpatriot
(Science is hard. Harder if you're stupid.)
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