You probably won’t see the news in Mainstream Media but the Gold Price has continued climbing steadily in recent times and a few days ago on Thursday, October 26th it reached a new Record High in Australian Dollars. It closed trading that day at $3,148 Australian Dollars per Ounce and while that date wasn’t a record high for the US Dollar Gold Price it does highlight the fact that over here in the Land Down Under, Gold is a much better store of value than our local Fiat Currency.
The Australian Dollar has continued to slide against the US Dollar in recent times. Even though the US itself has plenty of big problems, the Reserve Currency status of the US Dollar means that in a Flight to Safety (as we have seen since the Middle East flared up again) the US Dollar is the one of the first Fiat Currencies to catch a bid. But how long will it continue?
The smart money worldwide is moving into Gold. Central Banks have been buying it up and countries like China are explicitly hiding their Gold Reserves and Gold Acquisitions from scrutiny. Why would they do that? History is our best guide. In times of Uncertainty, Inflation and even War it is Gold that stands the test of time while Nations and their Fiat Currencies come and go.
In Australia, like many Western Countries, we have a Fiscally Irresponsible Government that is quick to overspend, tax and print new money. Our Government in Australia does not respect the basic principles of Sound Money and does not manage our Fiat Currency well...and I don’t see any indication that this is likely to change any time soon. We don’t have the luxury here of having the Worlds Reserve Currency so I doubt that the Australian Dollar will catch much of a bid when things really go pear-shaped. Gold remains a smart choice for Australians to store their wealth in these troubled times.
DISCLAIMER – This is not financial advice.
