An interesting look at gold vs currency

[54anickel]

I found this article helpful. It's easy to correlate the rise in gold vs the dollar, since the greenback is tanking. I've been trying to get a handle on what gold "should be" worth once you take the dropping dollar, hedging and lease sales, GATA's accusations of manipulation, etc, etc.

I thought this was a refreshing find.

http://www.kitco.com/weekly/paulvaneeden/jan162004.html

[Art_from_Ark]

1. For comparison, here's how gold has fared against the yen

for the past two years. Blue line = sell price, pink line = buy price (Sumitomo Mining). Numbers on the left are value in yen per gram (31.1 grams = one troy ounce), tax excluded.

[54anickel]

2. Thanks Art. The yen has been artificially peg to the dollar through

BoJ intervention. Of course that intervention has effected most other currencies as well.

Do you have a good source for charts in different currencies? I'd be interested in looking at Euro, Australia, Canada charts. Would greatly appreciate if you could point me in the direction of a source.

Many thanks again.

Do you have any thoughts on the article in the original post?

[Art_from_Ark]

3. I don't know if you could say that the yen has been artificially pegged

to the dollar-- after all, in the 90s it was probably the most volatile currency of any industrialized nation, going up and down like a yo-yo, losing half its value in four years, then gaining half of that back in two years, then losing 25%, then gaining 20% in a little more than one year. You could say that it is artificially undervalued because of the BoJ action, or you could say it is artificially overvalued because of the intensive efforts of the Bu$h administration to undervalue the dollar.

I don't have any graphs for those other currencies right off hand, since the yen/gold price is what is of immediate interest to me. I could look around for some later, but not right now because it's time to hit the sack.

And I have looked at the article, but I haven't been able to form an opinion of it yet.

[Art_from_Ark]

4. One comment on the Japanese graph...

The difference between the lowest monthly sell price and the highest monthly sell price during those two years has been a mere 220 yen (about $2) per gram-- or about $62 for one troy ounce. That's quite a bit less than the $100+ spread that gold has had in dollar terms during the same period.

[54anickel]

5. Thanks, I found some graphs.

http://www.goldbullion.com.au/au/charts/gb_charts.php