Gold Among The Mighty and the Weak of Paper Money
Although these days the price of physical gold in the Indonesian market in the range of USD 345 thousand / g not exactly cheap, relative to the real world gold price – we are lucky, the price of gold more expensive in rupiah-cheap when compared with the gold price a year ago .
If in the last year the world gold price in U.S. $ an increase of about 19% and the Euro increased approximately 11%; With our money back Rupiah powerful – or the gold price in rupiah dinar fell 9%.
Performance unusual Rupiah, which exceeds the power of currency world currency is stronger on one side not only exciting because we can buy gold or dinars with relatively inexpensive, but also inflation on imported goods would not want still we need to be low. Now is a good opportunity for you who want to replace the computer for example, because the computer is also more expensive … etc..
On the other hand we also need to be vigilant because if the situation lasts for a long time, not necessarily benefit the country. Consumption goods imports increased while exports will be less able to compete.
Another thing that also needs to watch out for is when the rupiah back to the original track, which tend to perform much weaker than the other strong currencies in the world – there is a possibility of gold prices will rise in the rupiah.
Consider for example the graph as well; in the last 10 years gold price in rupiah increased about 406%, while in U.S. $ only 294% rise and the euro had risen only 190%. This means that the performance of the rupiah last year was stronger than the U.S. $ and Euro, again not in line with long-term performance tend to be weaker than the strong currency is.
When you are swimming against the current, then you will more quickly tired because your energy depleted. So it seems to happen with the rupiah last year, I hope he's not tired and quick turn around – although we still have to watch out for this backflow
Other articles you need to read;
- Does the Euro exchange rate down drastically affect on the fall in gold prices?
- The Easiest Way to Understand and Manage The Investment Risk
- Which one is your investment choice, investment in shares or gold for the best?
- Where are the trends in gold prices towards the end of 2011?
- The World gold price booming proves the weakness of the global financial system
