from Gold Silver Worlds:
Gold reflects the value of a currency. That is the most basic and fundamental understanding of gold. Yes, there are drivers for the price of gold, including rising inflation, fear of war, growing ETF demand, etc. But the most fundamental driver is monetary devaluation.
There are plenty of examples which show that gold denominated in currencies that devalue, moves significantly higher. Think of recent cases in 2014 like the ones we wrote about:
- Emerging markets devaluations like the ones in Turkey andVenezuela – read Gold Price Exploding In Emerging Markets
- Ukraine’s currency devaluation – read Gold Price In Ukraine 75% Higher In 2014
- Argentine’s near hyperinflation – read Gold Trading At All-Time High In Argentine’s Currency
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