The price of gold rose nearly 25% in 2009 and 30% in 2010 on already high levels. The reference price of gold is always in dollars, but if we see in different currencies, and on the base 100 in 1970, would have risen at a rate up to 1,000 yen, 4,000 dollars, 4,500 euros, and 5,700 in British pounds . After more expensive in the 80's, remains fairly stable for twenty years, which leads to the disproportionate rise in value over the past five years.
World Bank President Robert Zoellick has suggested the possibility of reforming the exchange rate system, removing and replacing the dollar ownership of a basket of currencies (including the Chinese yuan), which act as currency in international transactions. This will stand to gain in stability and avoid speculation as there are now against the debt of Greece, Ireland, Portugal, Spain and Italy to attack the euro. Moreover, and here is new, that basket of currencies, which would work in practice as a major international currency would refer to gold, with the role of limiting the amount of money that can be emitted in the world. Gold would also be used as a reference for each currency and movements between them, that is, say if the exchange rates at all times have a reasonable basis.
However, gold may again play a role reference in the international monetary system. In 1971 the dollar no longer convertible into gold, which had limited the creation of money and financial bubbles, for every dollar issued had to have a corresponding amount of gold, then an ounce of gold was worth $ 35, and now 1,400. But the global economy grows and the supply of gold is stable and therefore can not be a reference to money growth. Moreover, gold is an asset class and its value depends on the speculation of those who, for various reasons, choose to have or not their investments and savings in gold. In times of inflation serves to protect against the loss of purchasing power, an erratic stock market, of a housing bubble, international conflicts, and now subject to currency speculation. It is a refuge in uncertainty, it is not known where to invest.
was Keynes who called gold "the barbarous relic", and today we consider it more relic in relation to the problems of the international economy, and more barbaric for the reasons underlying their hoarding. On the contrary, the proposal to use a group of hard currency is viable, but must be accompanied by a balance between what countries are buying and selling, and investment flows. This is the real challenge that will force us to rethink the relations between China and the U.S. and within the EU, so that the internal job growth and more balanced and responsive euro to a more homogeneous. If this occurs it would make more sense to keep investing in different assets in hard currency and give, little by little gold. Gumersindo
Ruiz.
(Grupo Joly 15/11/2010)
World Bank President Robert Zoellick has suggested the possibility of reforming the exchange rate system, removing and replacing the dollar ownership of a basket of currencies (including the Chinese yuan), which act as currency in international transactions. This will stand to gain in stability and avoid speculation as there are now against the debt of Greece, Ireland, Portugal, Spain and Italy to attack the euro. Moreover, and here is new, that basket of currencies, which would work in practice as a major international currency would refer to gold, with the role of limiting the amount of money that can be emitted in the world. Gold would also be used as a reference for each currency and movements between them, that is, say if the exchange rates at all times have a reasonable basis.
However, gold may again play a role reference in the international monetary system. In 1971 the dollar no longer convertible into gold, which had limited the creation of money and financial bubbles, for every dollar issued had to have a corresponding amount of gold, then an ounce of gold was worth $ 35, and now 1,400. But the global economy grows and the supply of gold is stable and therefore can not be a reference to money growth. Moreover, gold is an asset class and its value depends on the speculation of those who, for various reasons, choose to have or not their investments and savings in gold. In times of inflation serves to protect against the loss of purchasing power, an erratic stock market, of a housing bubble, international conflicts, and now subject to currency speculation. It is a refuge in uncertainty, it is not known where to invest.
was Keynes who called gold "the barbarous relic", and today we consider it more relic in relation to the problems of the international economy, and more barbaric for the reasons underlying their hoarding. On the contrary, the proposal to use a group of hard currency is viable, but must be accompanied by a balance between what countries are buying and selling, and investment flows. This is the real challenge that will force us to rethink the relations between China and the U.S. and within the EU, so that the internal job growth and more balanced and responsive euro to a more homogeneous. If this occurs it would make more sense to keep investing in different assets in hard currency and give, little by little gold. Gumersindo
Ruiz.
(Grupo Joly 15/11/2010)
0 comments:
Post a Comment