Yesterday I wrote about how gold had moved into a Bull Market since its lows back in December of 2015. The definition of a bull market is when an asset increases by at least 20% from its low.
But a new report out by Mark O'Byrne at Goldcore is showing that gold has not only moved up by more than 20% in the U.S., it has also become a bull market against nearly every major currency including the Euro, the British Pound, and the Yen.
So to put it in perspective, the entire world is now rushing into gold... as an investment, as a safe haven, and because it is the best performing asset in 2016.
Gold has surged another 4% this week to bring year to date gains to 20% in dollar terms, 19% in euro terms and 24% in sterling terms. We were interviewed by PickingAlpha.com yesterday afternoon and looked at what is currently driving gold prices higher in all currencies.
The sudden rise of gold prices and whether it is sustainable was considered. As was the British economy in the run up to Brexit referendum and the vulnerability of sterling due to the second largest current account deficit in the UK's post war history and London's property bubble.
The impact of the Chinese slowdown and the 1% rise of the Indian Duty tax, followed by country’s numerous jewelers’s strike and the outlook for Chinese and Indian demand were also looked at.
Gold is the strongest currency in the world so far this year. Gold prices began the year at $1,062.25/oz, €974.32 and £716.36 per ounce. Prices have surged in all currencies internationally and today's AM fix was $1,271.50, €1,158.67 and £898.93 per ounce. Or to put it more correctly, fiat currencies are being devalued and again losing value versus gold ... as they do over the long term. - Zerohedge