The AUD Gold Price is Telling Us Something: Time to Ditch Your Dollars…

The AUD Gold Price is Telling Us Something: Time to Ditch Your Dollars…

I had to do a double take this morning.

It’s my usual routine.

Before I get the kids and the dog breakfast…

Before I even get out of bed…

I check the gold price.

And even though it hasn’t changed since Saturday morning — futures markets don’t trade over the weekend — I still looked.

Over the years it’s become a habit.

The US dollar price was US$1,575…just where it was on Saturday.

As was the Aussie dollar gold price, sitting at $2,350.

The thing is, in the morning fog it took me a moment to absorb the ‘3’ in there…

The AUD gold price is now, once again, at all-time highs.

And it’s sending you a very important signal…

Learn why a recession in Australia is coming and three steps to ‘recession-proof’ your wealth. Click here to download your free report

What you need to read

But before we get to what the AUD gold price is telling you, read this:

I have yet to meet a hedge-fund billionaire, and I’ve met many, who does not have a large personal allocation to physical gold. They are ready for hat’s coming. Their clients are not.

So writes Jim in his latest book, Aftermath.

Think of Aftermath as tough love for your finances.

Aftermath really brings home the idea of just how unprepared the world is for another financial crisis.

In spite of markets steaming ahead, Jim points out that nothing was fixed from the last crisis. We just stuck a Band-Aid on a flesh wound and moved on.

Not only that, at the same time, countries like Russia and China are moving away from the US dollar and working out how to trade with gold or gold-backed tokens.

But why read it, is it just another doom and gloom take on bad markets and scrooge-like bankers?

Not at all.

The entire point of Jim’s book is to show you what isn’t working in the financial markets. The stuff the mainstream either glosses over or completely ignores.

This Friday, you’ll get your chance to get your hands on his book.

Stay tuned for more details.

The Aussie dollar is tanking

Why is the Aussie gold price so much higher than the US dollar gold price?

And what could it possibly be telling you?

Simply put, the Aussie dollar gold price is simply telling us how weak the Aussie dollar is.

At the time of writing, the Aussie dollar was worth 66.7 US cents to one greenback.

Which by the way, is taking our currency to a 10-year low.

The last time the Aussie dollar was this low, was around March 2009…

The thing is, the value of the Aussie dollar is probably going to get worse, not better.

That’s partly because we are a commodities-based currency.

When the value of things like iron ore, coal, copper, and natural gas tank, so does the AUD.

Then you’ve got the three rate cuts in five months last year. Rate cuts are generally seen as bad news for an economy. Lower rates suggest an economy needs a ‘boost’ by cheap money.

Then of course, you’ve got the hard data coming out.

For now gross domestic product (GDP) is showing a positive figure. But that’s largely down to government spending.

However, it’s the bits and bobs that make up GDP that is worrying traders.

Retail spending is poor. Our enormous trade spending is a reminder we are buying less from overseas.

New car sales have fallen. And 2019 was the worse sales year on record since 2011.1

This data put together causes people to worry that the Australian economy is facing a recession…

But that’s a topic for another day.

New Gold price highs tell you money is worthless

Bad economic data aside, if you listen to what gold is telling you today, you can prepare yourself for what is coming tomorrow.

The Aussie dollar gold price continued to hit new highs last year.

So much so that the yellow metal based in our currency gained 21% last year.

And it’s off to a flying start again this year.

Already Aussie dollar gold is up 9.1%, that’s well above the 3.6% it’s up in US dollars.

These all new highs for gold in our money are trying to tell us something.

And that is: The worth of your money is falling.

It’s a signal.

The more the Aussie dollar drops, the more powerful the message becomes.

We now need more Aussie dollars to buy the same one ounce of gold.

You aren’t just watching a booming market. You are witnessing the erosion of your purchasing power.

We are watching our money lose its value before our very eyes.

By all means, cheer on the AUD gold price rally, but heed its message.

The rising Aussie dollar gold price could be wealth destroying, if you aren’t taking steps to protect what you have.

Until next time,

Shae Russell Signature

Shae Russell,
Editor, The Daily Reckoning Australia

PS: Discover how some investors are preserving their wealth and even making a profit, as the economy tanks. Download your FREE report by clicking here.

1 ‘https://www.caradvice.com.au/824240/vfacts-january-2020-new-car-sales-results/ ’