Gold Forecaster
- Global Watch
Euro Prices of Gold and
Silver set to Rise!
Julian D.W.
Phillips
Gold Forecaster snippet
Apr 7, 2008
The focus in the gold market
has always been on the $ price of gold and yet we have ample
evidence of why we should not price gold in the US$, just as
the oil price should not be priced in the US$. The fall of the
$ has clouded the state of the global economy, its monetary system,
as well as most of its markets. The gold and silver price has
moved fairly closely with the € in the opposite direction
to the $. But should it be attached so faithfully to the €?
A look at the Euro price of
gold and silver is helpful keep our perspective on gold &
silver:
The € price of gold and
silver is a better reflection of their rise, because they are
on a currency that has been a relatively healthy measure of value.
By looking at gold & silver through these eyes, we are in
a better position to gauge the consensus of global market opinion
on the state of the world's money system without the corrupting
influence of a weak $.
Gold and Silver: Inverse
Measure of Confidence
For the gold and silver prices
to be able to reflect inversely the levels of "confidence"
in the world's money system, we have to put it in a position
where it can do so, ideally in a currency "neutral"
position, but this is not possible, so to choose a robust currency
to measure it, would express global confidence at its best.
The currency of choice then
becomes the world's second leading currency, the €, one
reflecting a high degree of strength as shown in the foreign
exchanges of the world. By pricing the two metals in the €
we can also better see its 'safe haven' value against a strong
currency. With the potentially disastrous times for the global
financial system that we live in, such a solid gauge would help
us to extract local influences, in particular the bad ones dragging
that currency down and get a global perspective.
Should any of you doubt the
level of danger the money system faces, you only have to listen
to the Chairman of the Federal Reserve Mr. Ben Bernanke, describing
just why the Fed had to step in and protect the entire U.S. financial
system, which could easily have collapsed. There is no doubt
in our mind that the ripples from that scenario would have sent
a financial Tsunami across the entire global monetary system,
probably causing it to collapse. So an item that can act outside
the paper currency world, which is dependent on the performance
of men and their management and reflect a 'common' value is needed
in these days. [Please do not confuse this concept with that
of usable money. Gold and silver have done this for quite a few
thousand years before 1970.]
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Apr 4, 2008
Julian
D.W. Phillips
email: gold-authenticmoney@iafrica.com
321gold Ltd
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