Posted on 10/02/2024 7:01:03 AM PDT by delta7
Kitco News) - Gold continues to dominate the global currency market, hitting record highs across the board; however, the precious metal also continues to demonstrate its value in the real world.
Last week, the European-based investment firm Incrementum AG published its annual iPhone/gold ratio, which underscores how gold continues to maintain its value.
The firm noted that for the third year in a row, the cost of an iPhone priced in gold bullion has dropped. According to the unique ratio, the iPhone 16 Pro with 1 TB of memory costs 0.60 ounces of gold, which is 23% less than last year’s 0.78 ounces of gold for the iPhone 15 Pro.
"Compared to 2022, the price of an iPhone measured in gold fell by almost a third, and compared to 2018, this year’s iPhone is almost 50% cheaper. 2018 was the only year a gold investor had to spend more than 1 ounce of gold for a brand-new iPhone," the analysts said.
Priced in U.S. dollars, the cost of the latest iPhone has remained unchanged for the last three years.
"But stable prices are definitely different from falling prices," the report noted. "As in 2021, 2022, and 2023, the price of the Pro model with the largest available storage (1 TB) is USD 1,499. Compared to the very first iPhone, which was launched in 2007 for USD 599, the price has increased by 150%. This corresponds to an annual iPhone inflation rate of 5.5%. Gold investors, on the other hand, benefit from the fact that the price of gold has risen by almost 290% during the iPhone era."
Gold has managed to maintain its purchasing power, achieving broad-based gains and reaching all-time highs against major currencies like the euro, the British pound, the Canadian dollar, and the Australian dollar.
Incrementum’s latest research shows that gold prices are up roughly 25% so far this year against a basket of global currencies.
Although gold prices encountered some resistance at all-time highs above $2,680 an ounce last week, many analysts expect the precious metal still has plenty of upside as the Federal Reserve now leads central banks in a global interest rate easing cycle.
The last domino to fall was the Swiss Franc, the most stable currency on the planet.
https://www.livepriceofgold.com/switzerland-gold-price.html
……and the Euro just lost it’s status to Gold. Gold just displaced the Euro and jumped into the number two slot for world holdings. The USD still the most held currency, but the USD world holdings has dropped to 52 percent- down from 80 some thing percent at its zenith. Senile Joe’s weaponized USD was a nail in our coffin.
These facts can not be ignored, ALL “ paper” is collapsing against Gold. All eyes on the Brics Summit 22-24 October…..
Well, there goes the gold necklace I was hoping to get from Santa...
The problem with both US, Europe and really most of the world is that all of them are leveraged up to their heads.
We are not really in some existential economic crisis (like WWII), but we are borrowing like 50% of our budget!
They supposedly follow Keynes, but only half way. According to him, countries can borrow to stimulate economy, but repay the debts as soon as the economy gets better.
Brandon is doing nothing, but wasting money on stimulating economy.
And, most other countries are not any differ.
I think, that is what keeps us going.
We would be long bankrupt, if not that other countries may be even worse off!
We cannot keep like this!
If YOU would like to be on a Gold & Silver PING LIST, please pm me.
The Gold & Silver Ping List covers the following:
Everything Gold & Silver
Stock market investments in mining companies,
etc.
Gold is really really overbought, but also wondering if made a mistake for selling all my positions. We just cannot get a sustained sell off here.
The more war appears inevitable, the more gold will climb.
It will not grow to the sky.
It will not be a straight line.
I agree and I am waiting for the moment I can buy in at a lower price. This time in history is one of the best for gold long term. It is strange though as when the Fed lowered the interest rates gold did not rally that day. Maybe it was priced in.
It appears that gold will reach a high in October and then lower for a time.
It likely will be influenced more by war than interest rates.
We have some we hold forever. Some we trade as cycles move through. Each has a different purpose for us.
Good luck in your choices.
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