Saturday 2 July 2011
Posted by
Admin Hijrah Dinar
This fascinating graph from The Economist shows a list of countries ordered by the amount of gold they hold on a per-citizen basis.
It's no coincidence that first-place Switzerland has seen its currency surge against the US Dollar.
Just today the WSJ ran a story titled, "Dollar Falls to Fresh All-Time Low Vs Swiss Franc". Currencies backed by gold (and those where interest rates are reasonable) will remain attractive compared to dollar assets, which Marc Faber calls "confetti".
One wonders how far down America would be on the list.
Those who still view gold and other precious metals as barbarous relics - or can't pronounce barbarous and just say bubble - are not paying attention to global trends.
Commentary on the data by The Economist:
It's no coincidence that first-place Switzerland has seen its currency surge against the US Dollar.
Just today the WSJ ran a story titled, "Dollar Falls to Fresh All-Time Low Vs Swiss Franc". Currencies backed by gold (and those where interest rates are reasonable) will remain attractive compared to dollar assets, which Marc Faber calls "confetti".
One wonders how far down America would be on the list.
Those who still view gold and other precious metals as barbarous relics - or can't pronounce barbarous and just say bubble - are not paying attention to global trends.
Commentary on the data by The Economist:
THE creditworthiness of a country used to
be judged by the level of its gold reserves. Under the gold standard, a
fall in reserves would lead to the central bank taking crisis measures.
The country with the biggest reserves in the world is, not
surprisingly, America, with 8,134 tonnes. But expressed in terms of
reserves per person, the picture looks very different.
China
does not feature in the list at all; but gold bugs fantasise about what
might happen if the people’s republic were to swap just some of its
mountain of Treasury bonds for bullion.
For more on Chinese surging demand for gold and silver, see our headline story, "China May Buy $1 TRILLION in Gold".
Category:
Gold Saving / Investment
Subscribe to:
Post Comments (Atom)
0 comments:
Post a Comment