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Let’s begin with a quiz.
  • In the case of war or total economic collapse, which would be more valuable, oil or gold?
  • What is the average cost of producing an ounce of gold, a barrel of oil and printing a dollar?
  • Is gold a commodity, currency or Veblen good?
While days of the gold standard are behind us, gold still plays a role in day-to-day life, be it as a currency or commodity. According to World Gold Council, the Turks amassed over 3,500 tons of gold “under-the-pillow” by 2014 and Russia and China are stocking up. Is gold truly an investment or are people busy stacking “rocks” which could be another tulip mania?
Famous gold quote...
Gold Has Never Been Worth Zero

Gold investment advisers say when countries start stocking gold, it is not indicative of wealth but potential economic turmoil. They also say the accumulation of gold indicates what other nations and hedge funds think about the US dollar and the global economy. Others fall in the group of the British economist John Maynard Keynes and believe that “gold is a barbarous relic”.
The image below shows the rise of gold since 2001 and how gold reacts to economic events affecting the US dollar.
Many also claim that gold has neve…
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pipx avatar
pipx 20 Feb.

Likerty, it gets simpler trading gold with time and practice, just key points to remember is that gold price always goes up when the dollar index is down. That said when the governments inject money into the economy, gold price has to drop below the money supply line as indicated​ in the last chart.

Airmike avatar
Airmike 22 Feb.

nice article

VictoriaVika avatar

Thank you for article, it is so nice of you to share your great dedication and effort, also here detailed description of the method. Good work, congrats.

FxMidaso avatar
FxMidaso 22 Feb.


Agnessa26 avatar
Agnessa26 23 Feb.

Очень хорошая работа!!

orto leave comments
Why should we know what hard currencies are in our period? Hard currencies or safe haven currencies are important for investors because there will be a rush of money from all over the world to tighten the risk in critical financial moments therefore they will appreciate severely in a short time, as an example we can see how CHF appreciated from 2009 to 2011 against all pairs. What makes a currency a hard one? There are several factors in financial markets as; long-term stability of its purchasing power, the associated country's political and fiscal condition and outlook, and the policy posture of the issuing central bank , however we can see sometimes that some countries or union have exposure to high risk but still remain hard. For example, the U.S is at very high risks at the moment 1- head winds from the EU 2- debt issues known as fiscal cliff 3- deflationary risk from lower CPI and lower consumer confidence 4- lower credibility of FED according to political issues from Congress. As another example we can see the EURO which I strongly believe the risks are underestimated by market. There are several crucial risks there which might be 1- the EURO is not irreversible 2- debt issu…
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ante777 avatar
ante777 21 Jan.

Difficult issue.Good thoughts.

kelvindfxguru avatar

Difficult Question Indeed. I am thinking of it myself

SpecialFX avatar
SpecialFX 29 Jan.

I don't think NOK, SEK and DKK can be consistent safe-haven currencies for a long time, mostly because they are not very liquid compared to the majors. Also, the DKK is pegged to the EUR, so wherever the EUR moves, the DKK will follow :)

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