Comments on: Gold a Better Bet Against the US Dollar than the Euro http://www.dailyreckoning.com.au/gold-better-than-euro/2007/11/27/ An independent perspective on the Australian and global investment markets Sun, 21 Mar 2010 08:37:19 +0000 http://wordpress.org/?v=2.8 hourly 1 By: TaxHaven http://www.dailyreckoning.com.au/gold-better-than-euro/2007/11/27/comment-page-1/#comment-5100 TaxHaven Tue, 27 Nov 2007 05:14:12 +0000 http://www.dailyreckoning.com.au/gold-better-than-euro/2007/11/27/#comment-5100 Any one thinking of jumping into Euros now should ask themselves why they want to do it. Perhaps they want more paper? Nothing lasts forever (except gold). One day soon the Euro will start to decline vs. the dollar, or at best will begin to reach a top and yo-yo. Any new investors-cum-speculators will find few gains and much danger. One day soon the unexpected will happen too - it always does - and the US will announce a unilateral withdrawal from Iraq, a massive tax break or interest rates will begin to soar a la Paul Volcker. Gold may be knocked down $200/oz. in days, but will - MUST -bounce back. Gold's fundamental reasons for rising vs. paper are not going to go away anytime soon. Gold doesn't only rise because speculators are playing with it. Euros do; gold floats but paper sinks. The buying power of all fiat currencies is continually dropping. Euroland, no more a great economic success story than the US, has not progressed so much as to cause the currency to suddenly become a highly sought-after store of value, as is gold. As the book says, gold will have more of a future than paper... Any one thinking of jumping into Euros now should ask themselves why they want to do it. Perhaps they want more paper? Nothing lasts forever (except gold). One day soon the Euro will start to decline vs. the dollar, or at best will begin to reach a top and yo-yo. Any new investors-cum-speculators will find few gains and much danger.

One day soon the unexpected will happen too - it always does - and the US will announce a unilateral withdrawal from Iraq, a massive tax break or interest rates will begin to soar a la Paul Volcker. Gold may be knocked down $200/oz. in days, but will - MUST -bounce back. Gold's fundamental reasons for rising vs. paper are not going to go away anytime soon. Gold doesn't only rise because speculators are playing with it. Euros do; gold floats but paper sinks. The buying power of all fiat currencies is continually dropping. Euroland, no more a great economic success story than the US, has not progressed so much as to cause the currency to suddenly become a highly sought-after store of value, as is gold. As the book says, gold will have more of a future than paper...

]]>