How price of gold moves with currencies

You can see that gold has been a good investment for buyers over the past 10 years. The price of 1 once is given in US dollars, and it has moved from USD 900 to USD1275 – an increase of 42% in US dollars.

A buyer in Europe would have found a much bigger return, because the Euro has fallen in value by 31% against the US dollar, so he would have his cake and eat it, and would have ended up with a really big gain of some 102% when measured in Euros.

This is not a recommendation to buy gold because you will never know whether it will increase in value in US Dollars and you will also never know if the value of the US dollar will increase against the Euro. The last thing worth mentioning is that transaction costs are very high when buying and selling, but so are expensive investment products from most of the banks.

Investing in gold is quite risky, but if you will never lose all of your hard-earned cash. The higher the price, the more they mine the stuff, and its price can also increase with greater uncertainty in world affairs – but who wants to bet on disasters?

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