Don’t Think Gold Prices Are Going Up? Look At This!

Who says gold prices haven’t done much in the past few years. Living in North America a person can get a sometimes skewed perception of what is really happening in the world. We are constantly being bombarded by what seems to be American news and American everything else. So when it comes to things like the price of gold, we are always accustom to a US dollar amount. And when commentators say that the price of gold hasn’t performed as well as some stocks or other equities or even the US dollar we tend to agree or acknowledge that.

However if you were to take the price of gold and look at the price in some other currency outside of US dollars you would be surprised to see just how well it has performed year over year. Being as I am in Canada I will post a chart taken today of a US gold price, a Canadian gold price a South African gold price and a Brazilian gold price. The reason I use a South Africa currency is because South Africa is country built on gold. Australia also is a heavy resource country and gold mining plays a very important role in that country. I also decided to use 15 year charts to show the actual upside growth in the price of gold. The first chart is the price in US dollars followed by Canada, Australia, South Africa and finally Brazil.

So first up is a chart showing the price of gold in US dollars as of today, March 1 2016. Remember the high was in September 2011 and the top gold price was $1911.


Next chart here is showing the performance of price of gold in Canadian dollars. Notice that we are only couple hundred bucks from our all time high back in 2011.


Now we have a chart showing what an ounce of is worth in Australian dollars. Notice it is right back up so it is almost kissing those old highs back in 2011.


And finally here is a chart of what an ounce of gold is worth if you were living in South Africa right now today. Let’s say you bought a few ounces 10 years ago as a rainy day investment. I’ll just bet you would be one happy smiling happy person today.


So there is a couple lessons to learn here. One is that gold always holds it’s value. It always has and will most likely always will. Gold is not only an investment but it is also an insurance for when things go bad. Things like your currency gets devalued and the economy is a mess. Just ask anyone who lives in Brazil today if they wished they would have bought some gold a few years back. And no, Brazil is not some third world country. Brazil is a huge country that is part of the BRIC’s nations. Well educated people, big factories, offshore oil, agriculture that is second to none.


Gold is a great invesment and everyone should have a portion of their investment portfolio in gold or even silver. You can buy gold almost anywhere online and if you are American you can even have real gold in your IRA. If buying physical gold is not your thing, there are other great ways to invest such as gold mining stocks or even gold mining properties.

Being as we always get a US dollar price on gold and that price seems to be stuck in the $1,200 -$1,300 range for the past 3-4 years we seem to get the feeling that the gold price hasn’t done anything but moved sideways at best. But taking a look at other currencies we can see just how fast gold can accelerate in price when things go wrong.

The chart below is a 10 year chart of the Argentine Peso. As you can see the price of gold has gone up 1000’s of percentage points over that period of time. This is due to the Peso being more and more devalued or in other words, becoming worthless. Of course there is always the argument that a person could have just bought US dollars and would have ended up the same as had they bought gold. The only difference is that gold long term will outshine ALL currencies.


The above the chart just goes to show how bad things can get and just how quick these bad things can happen with a countries currency. In the chart below you can see and exploded view of just how rampant things can get. Below is a 6 month chart of gold in the Argentine Peso. Even if you would have bought gold or silver around Christmas time, look how you have perserved your wealth due to inflation and devaluation of your currency. Argentina imports just went up 100% since that time. Your bank account has lost half it’s value. Imagine saving up for a down payment on a home. One look at that chart and the only thing it is going to tell you is that you’ll just have to keep working a whole lot longer.


In the last article I wrote I have posted charts of the Canadian dollar in gold terms, the Australian dollar and the Brazilian Real and also South African Rand. All of these countries are seeing new highs or very close to the old highs of 2011 in gold prices. This is also known as the wealth transfer of where people have seen their currency wealth get transferred to those who own gold.

Yes Argentinians may say, “Don’t cry for me Argentina,” but I imagine some are just crying for Argentina instead.

If you enjoyed this article, please feel free to share. When seeking out mining stocks alsways use Due Diligence and see our Disclaimer and be sure to sign up for our free news letter located on the right hand side of this page.

If you enjoyed this article, please feel free to share. When seeking out mining stocks alsways use Due Diligence and see our Disclaimer and be sure to sign up for our free news letter located on the right hand side of this page.


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