EDITOR'S NOTE: Willem Middelkoop makes an interesting point calling attention to the price of gold in currencies other than the dollar. The dollar may be the world’s reserve currency, but it distracts us from the notion that gold’s value isn’t necessarily determined by the dollar (or the dollar alone). Gold doesn’t always move opposite the dollar. And over the course of time, the value of the dollar consistently erodes while gold’s value rises by (oddly enough) remaining steady. Since hardly anyone in the US measures gold by any other currency than the dollar, here’s a quick summary: year to date, gold is down -0.72% in dollars, up by 8% in euros, and up over 17% in yen. By the looks of current economic conditions in the US, it’s highly likely that the price of gold against the dollar may soon follow.
Investors always watch gold priced in dollar ..
— Willem Middelkoop (@wmiddelkoop) June 29, 2022
Originally published on Twitter by Willem Middlekoop.