Gold Is Falling Against Every Currency Except the World’s Reserve Currency

• Posted by Greg Harmon
• on July 22nd, 2011

Monday July 18, 2011. That day marks the top for Gold (ticker: $GLD) unless you buy it with US Dollars. Pretty much everywhere else in the world the price of $GLD peaked on Monday. Take a look at $GLD priced in British Pound Sterling ($FXB), the Euro ($FXE), the Japanese Yen ($FXY) and an Emerging Market Currency Basket ($CEW). All the same story.

It is even falling against the currency of the largest nation in the world, China.

But here in the US where we buy our Gold, it continues to rise as shown in the chart below. Why is that? Paul Krugman in his NY Times Opinion piece yesterday suggests that it might be because of marketing campaigns by Gold sellers or producers. Seriously? Maybe a better answer is that the World’s reserve currency is in a set of circumstances that through the debt ceiling crisis, massive looming inflation and continued debasing our currency leads to solid forms of wealth that do not decay costing more. Excuse me now while I look for anything that may be lying around my neighborhood written by Paul Krugman to burn.

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