Tuesday, November 10, 2009

U.S. Dollar Losing It's Luster to Gold Bullion


"There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency."  -John Maynard Keynes

In the last four decades, the U.S. Dollar has lost a whopping -92% of its purchasing power. And it has lost -21% of that purchasing power in just the last nine years.

Barclays Bank has recalculated the dollar's share of global currency reserves. The dollar once stood at 80% of global reserves. Back in 2002, before the weak dollar trend, the dollar made up 73% of global reserves. Now that has fallen to 62.8%.

Central banks are diversifying away from the Dollar and paper fiat currencies in general. Instead they're exchanging paper currencies for gold. And that's why gold is trading at over $1,100 an ounce.



Charts courtesy of www.StockCharts.com

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