Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
US Presidential Election Year Stock Market Seasonal Trend - 29th Nov 24
Who controls the past controls the future: who controls the present controls the past - 29th Nov 24
Gold After Trump Wins - 29th Nov 24
The AI Stocks, Housing, Inflation and Bitcoin Crypto Mega-trends - 27th Nov 24
Gold Price Ahead of the Thanksgiving Weekend - 27th Nov 24
Bitcoin Gravy Train Trend Forecast to June 2025 - 24th Nov 24
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Price Was Up 73% Last Year!

Commodities / Gold and Silver 2014 Jan 05, 2015 - 05:01 PM GMT

By: Jeff_Clark

Commodities

Dmitry sipped his coffee drink at his favorite café in Moscow, flipping through the newspaper in front of him. It was full of bad news: currency troubles, ongoing sanctions from the West, rising inflation, and more.

But he ignored all that. He turned to the investment section and began to scan the page, looking for the latest price of one specific investment. He went past the headline that screamed Russia’s inflation rate was up to 11.4% last year, as well as the article detailing the ruble’s debilitating 46.5% fall. He knew all those things and had experienced them firsthand.


He went directly to the page that quoted the price of gold in rubles.

And there it was. And this time, it wasn’t just a short price quote, but a full article on the topic of gold, starting with a headline that warmed his heart.

“Gold Price in Rubles Rises 73% in 2014”

The article detailed how gold had soared last year due to the depreciation of the ruble. What especially pleased him was that gold rose more than the ruble fell. It also outpaced the rise in inflation.

The article included a chart of the last six weeks’ price movement, during which the ruble had taken an especially ugly drop.

Dmitry wasn’t surprised to read that it wasn’t just the gold price in rubles that was up last year…

The price of gold rose against ALL currencies in 2014—except the US dollar. Yes, gold was up in the euro, Japanese yen, Swiss franc, Canadian dollar, British pound, Australian dollar, New Zealand dollar, Chinese renminbi, Indian rupee, Swedish krona, Brazilian real, Israeli shekel, and South Korean won.

Even more interesting was that gold outperformed most stock markets around the world…

Most investors outside North America not only saw their currency lose value but also lost money in their stock market. His fellow Russians were hit especially hard. Whoever owned gold, though, had avoided these debilitating losses and was actually sitting on a profit.

The article concluded by congratulating those with the foresight to buy gold, which, unfortunately, didn’t include many of his fellow citizens—but it did include him.

Dmitry has every right to feel pleased with himself. While inflation raged all around him, the currency fell through the floor, and global crises remained escalated, his investment in gold had done exactly what it was supposed to do: protect him against currency and monetary calamity. In fact, he’d gained more with gold than he lost in ruble purchasing power.

He’d read warnings that this could happen—warnings others had dismissed as the ravings of loony gold bugs. He had been skeptical, frankly, and it hadn’t happened exactly as he thought it would, but now he sure was glad he’d decided to play it safe and bought some gold as insurance.

He wondered what those in North America thought about this phenomenon… Did they see the writing on the global economic wall—or did they imagine they were immune because their stock market had risen so much while gold remained weak in their currency? Did they really believe their central bankers were wizards endowed with supernatural powers others lacked? Didn’t they remember Ben Bernanke insisting in 2007 and 2008 that there was no crisis and that everything was under control?

It seemed to Dmitry that many of them were kidding themselves, because he knew that at some point, the very thing that happened to inflation rates and currency values in his country could happen to theirs. And how gold would respond—as he now knew firsthand.

Like him, sensible Americans who bought gold while it was on sale wouldn’t know the timing but would be prepared for the inevitable outcome of the currency-destroying policies their central bank had adopted, just like all the others. He hoped they saw it coming and envied their chance to take advantage of relatively low prices.

Dmitry could hardly wait for tomorrow, the day the January BIG GOLD would be released. And it wouldn’t be just any issue, but a 50-page blockbuster edition that interviewed 17 experts on precious metals and included two actionable steps to kickstart 2015: a discount on international bullion storage and a new recommended stock, one that Jeff Clark described as a must-own company that came with both safety and high potential. He hopes his friends check it out.

The article Gold Was Up 73% Last Year! was originally published at caseyresearch.com.
Casey Research Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in