DAN NORCINI'S COMMENTS AND CHARTS

Gold In US Dollars Is Only Part Of The Picture Posted: Nov 24 2008 By: Dan Norcini Post Edited: November 24, 2008 at 10:36 pm Dear Friends, Linked below (GO TO JSMINESET.COM FOR THE LINKS) are a few charts detailing the price of gold when viewed through the prism of differing major currencies. As you can see, gold in British Pound terms has notched another new all time high. So did gold priced in Canadian Dollar terms. Gold in Australian dollar terms is just a wee bit below its all time high. The same goes for gold in terms of the Russian Ruble. Gold in Euro terms is 20 euros below its all time high. The weakest gold chart is Yen-Gold which has been hit because of the strength in the Yen coming from the carry trade unwind. That has served to push the yen sharply higher which depresses the price of gold when measured in those terms. We Americans tend to view the price of gold only in US Dollar terms forgetting that a major portion of the world does not do so. It is my opinion that those American-based analysts who make their prognostications of gold without considering the price in terms of the other major currencies of the world do their readers a huge disservice. Ask yourself a simple question as you look at the following price charts – does this look like a metal that is experiencing a deflationary psyche among a large portion of the global investment community or does it look like a metal that is preserving the wealth of millions of international investors as the global economic chaos expands? Keep this in mind whenever you read some self-proclaimed gold expert dissing the metal because it is not trading back above $1000 US and is anxious to short it. Such gloom and doom gold dirges would be met with incredulous scorn in the UK and perhaps with amusement in Canada and elsewhere. Australian investors must be thinking that American beers are missing a few vital ingredients if this is the kind of thinking that they are producing. Whether some folks want to admit it or not, gold is an international currency of last resort and always will be, no matter how much the US based elites and their paper love-sick puppies want to pooh-pooh it. Trader Dan