Look What’s Happening To Gold Priced In OTHER Currencies
By David Smith
ActivistPost.com
FEBRUARY 26, 2016
At the close of market on the Wednesday this essay was written, the price of one troy ounce of gold was US $1,229. A troy ounce of silver was trading at US $15.25.
Around the world, the price of gold and silver is most commonly quoted in U.S. dollars. As Americans, we tend to think this is the pricing “gold standard.” But it’s easy to forget that foreign investors generally pay for a purchase in their country’s dominant currency.
Yes, there are realms whose domestic monetary unit is actually the U.S. dollar. These locales have what is known as a “dollarized” economy. But many, if not most, transact predominantly in their own currency.
In Argentina and Mexico, for example, it’s the peso. In Great Britain, it’s the Pound sterling. In most of Europe, it’s the euro. In Russia, the ruble. In China, the yuan.
If the currency in question trades reasonably close to that of the dollar, there may not be a major difference. For example, on the day gold traded at US $1,229, a troy ounce was priced at about 1,102 euros (€).
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