|
As
a currency, the Euro doesn't have to do much to equal its peers...
"SILVER HITS new all-time highs in
Euro" proclaimed Zero Hedge on Monday.
Regular readers of the blog site
won't choke to know it was wrong, this time by only one third. Mistaking (and
showing) a chart of month-end prices for a chart of daily silver prices, Zero Hedge's pseudonymous host, Tyler Durden,
missed the true Euro-equivalent spike to €32.80 per ounce of 18 January
1980 – hit in what was then the Deutsche Mark the very same day that
silver priced in Dollars also hit its all-time high to date...some 44% above
this week's top.
Still, the point is
near-enough made. Because silver, like gold, isn't just about the Dollar,
even though its latest surge coincides with the latest plunge in the US
currency. Instead, silver has also caught a strong and growing bid over the
last 5 years against the Dollar's upstart challenger too. And since the Euro
debt crisis really got started 12 months ago, the silver price has scarcely
looked back...rising 108% from the start of 2010.
"The Euro as a currency is
not in crisis. The single currency is sound and credible," said European
Central Bank president Jean-Claude Trichet in an
interview with Paris newspaper L'Espresso
earlier this month. Which, a little like Zero Hedge, is
both premature and misleading. Because the Euro "as a
currency" doesn't have to achieve very much to retain the same
credibility as its modern-day competitors.
Against the older monetary
measures of gold and silver, on the other hand, the Euro looks just as weak
as the other three "big four" reserve currencies – the
Dollar, Sterling and Yen.
Adrian Ash
Head of
Research
Bullionvault.com
You can also Receive your first gram of Gold free by opening an
account with Bullion Vault : Click here.
City correspondent for The Daily Reckoning in London, Adrian Ash is
head of research at BullionVault.com – giving you direct access to investment
gold, vaulted in Zurich, on $3 spreads and 0.8% dealing fees.
Please Note: This article is
to inform your thinking, not lead it. Only you can decide the best place for
your money, and any decision you make will put your money at risk. Information
or data included here may have already been overtaken by events – and
must be verified elsewhere – should you choose to act on it.
|
