Thursday, February 2, 2012

January 2012 - Gold, Silver, Currency and Asset Performance Review



Gold was again one of the top performing assets and currencies in January. Its 11% gain in January surpassed the 10% gains seen in all of 2010.

US Dollar Versus G10 Currencies and Gold

It was gold’s best start to the year since the start of the bull market in 2000. There are conflicting media reports as to whether this is the best January performance since 1980, 1983 or 1999.

Gold rose 11% in US dollar terms, 8.6% in GBP terms and 9.8% euro terms or more correctly these fiat currencies fell by this amount against immutable gold (*see various currency tables).

The strongest of major currencies in January were the Brazilian real and Mexican peso both of which only fell 3.9% against gold.

Next came the New Zealand dollar with a 4.5% fall and then the Australian dollar which fell 6.5% against gold.

The weakest currency in the month of January was the US dollar which fell 11.5% against gold.

Other major currencies performance versus gold were – the Australian dollar (-6.5% versus gold), British pound (-8.6%), Canadian dollar (-8.7%), Swiss franc (-9%), Japanese yen (-9.3%), euro (-9.8%).

The US dollar index was down just 1.1% for the month to 79.304 showing once again what a poor and misleading foreign exchange bench mark it is.

Euro Versus G10 Currencies and Gold


Gold’s performance was matched and surpassed by silver which again surprised many by rising 20% in value with growing concerns of diminished silver stockpiles. The quasi monetary metal silver thus became the best performing commodity and currency in January (see below).


The PGMs also rose in value with platinum gaining 13.5% and palladium nearly 5%.

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