by: Tom Sullivan
THE DOLLAR IS NOT AS GOOD AS GOLD. Neither are 22 other currencies.
A recent study by GoldMoney.com, which enables online cross-border transactions using gold as a currency, found that from 2000 through 2009, gold rose an average 10.1% a year versus the Swiss franc (which turned in the best of the bad showings by the currencies studied) to 14.9% against the U.S. dollar (a middling performer) to 20.0% for the Sri Lankan rupee (the worst in show).
“Gold isn’t going up, currencies are going down,” says James Turk, GoldMoney.com’s founder. “The purchasing power of gold remains basically unchanged against commodities. In contrast, the purchasing power of national currencies is being constantly eroded.”
Silver also appreciated against the 23 currencies, from 9.5% for the New Zealand and Australian dollars, to 14.4% for the U.S. dollar, to 17.3% for the Mexican peso.