Gold vs The Euro: Model Portfolio Update

• Gregor Macdonald
• February 17th, 2010

Despite the rebound in the Euro against the Dollar, the problems which plague the common currency will certainly roll onward for some time to come. The recent drama with the PIGS is of course just part of the larger problem of developed world sovereign debt, affecting the EU and the US equally. But away from the front page of the newspaper the Euro is quietly slipping against gold, as the staircase of currency debasement makes its way further along in time.

In the same way that there’s no safe haven in developed world sovereign debt, it seems unlikely there are safe currencies either that can withstand the advance of gold. Even the Canadian and Australian Dollars have failed to keep up with gold–though they have certainly done a much better job at keeping the spread in check. Indeed, gold against both the CAD and the AUD remains below its previous highs. To this point, there may come a time when…(this article continues for subscribers through the membership gateway, on the right side of this page)

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