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- Unlike the Australian Dollar, gold pays less interest than even the US Dollar or Japanese Yen…<\/em><\/li>\n<\/ul>\n
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- IF GROWING INFLATION<\/strong> is our future, then a likely-looking bolt-hole for retained capital must be the Australian Dollar.<\/li>\n<\/ul>\n
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- Offering the strongest developed-world interest rates<\/a> since long before the global financial crisis, the Aussie’s exchange rate maps investor sentiment towards the “commodity super-cycle” theory, thanks most of all to Australia feeding China’s fast-growing appetite for raw materials.<\/li>\n<\/ul>\n
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- But the Aussie Dollar also points, therefore, to investor fears of deflation \u2013 most spectacularly in its currency cross with gold bullion<\/a>…<\/li>\n<\/ul>\n
![\"\"](\"https:\/\/www.goldgenie.com\/blog\/wp-content\/uploads\/Graph1.jpg\" "\\"Graph1\\"")
<\/a><\/p>\n- \n
- Unlike the Aussie, gold pays no interest. It has little industrial use, finding economic value instead in its social use of storing value when other, more growth-reliant investments fail.<\/li>\n<\/ul>\n
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- And yet, as our chart shows<\/a>, gold has just signalled a huge swing in sentiment…away from the commodity market’s super-rally of mid-to-late 2009…and back towards the meltdown fears of fall\/winter 2008.<\/li>\n<\/ul>\n
- \n
- Yes, a bust in Australia’s consumer-credit and housing bubbles looks long overdue. Yes, the Rudd government’s mining-tax blunder has weighed on the Aussie as well. But gold’s rapid recovery in AUD per oz \u2013 up some 27% from start-March to within a few bucks of last year’s record spike \u2013 comes even as the Reserve Bank<\/a> raised its cash rates three months running, up from 3.75% to 4.50%.<\/li>\n<\/ul>\n
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- The threat of Eurozone (if not broader) defaults trumped rising rates, in short, as well as what the RBA calls an “unprecedented” boom<\/a> in commodity exports.<\/li>\n<\/ul>\n
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- That’ll be gold<\/a> rising on deflationary fears, then, just as it did during the Great Depression and again at the start of 2009.<\/li>\n<\/ul>\n
Adrian Ash<\/p>\n
BullionVault<\/a><\/p>\n
Gold price chart, no delay<\/a> | Buy gold online at live prices<\/a><\/p>\n
Formerly City correspondent for The Daily Reckoning in London and head of editorial at the UK’s leading financial advisory for private investors, Adrian Ash<\/strong> is the editor of Gold News<\/a> and head of research at BullionVault<\/a> \u2013 winner of the Queen’s Award for Enterprise Innovation, 2009 \u2013 where you can buy gold today<\/a> vaulted in Zurich on $3 spreads and 0.8% dealing fees.<\/p>\n
- That’ll be gold<\/a> rising on deflationary fears, then, just as it did during the Great Depression and again at the start of 2009.<\/li>\n<\/ul>\n
- The threat of Eurozone (if not broader) defaults trumped rising rates, in short, as well as what the RBA calls an “unprecedented” boom<\/a> in commodity exports.<\/li>\n<\/ul>\n
- Yes, a bust in Australia’s consumer-credit and housing bubbles looks long overdue. Yes, the Rudd government’s mining-tax blunder has weighed on the Aussie as well. But gold’s rapid recovery in AUD per oz \u2013 up some 27% from start-March to within a few bucks of last year’s record spike \u2013 comes even as the Reserve Bank<\/a> raised its cash rates three months running, up from 3.75% to 4.50%.<\/li>\n<\/ul>\n
- And yet, as our chart shows<\/a>, gold has just signalled a huge swing in sentiment…away from the commodity market’s super-rally of mid-to-late 2009…and back towards the meltdown fears of fall\/winter 2008.<\/li>\n<\/ul>\n
- Unlike the Aussie, gold pays no interest. It has little industrial use, finding economic value instead in its social use of storing value when other, more growth-reliant investments fail.<\/li>\n<\/ul>\n
- But the Aussie Dollar also points, therefore, to investor fears of deflation \u2013 most spectacularly in its currency cross with gold bullion<\/a>…<\/li>\n<\/ul>\n
- Offering the strongest developed-world interest rates<\/a> since long before the global financial crisis, the Aussie’s exchange rate maps investor sentiment towards the “commodity super-cycle” theory, thanks most of all to Australia feeding China’s fast-growing appetite for raw materials.<\/li>\n<\/ul>\n
- IF GROWING INFLATION<\/strong> is our future, then a likely-looking bolt-hole for retained capital must be the Australian Dollar.<\/li>\n<\/ul>\n