The price of gold struck an all-time high at 1,038.65 dollars an ounce here on Tuesday as the dollar fell on a reported plan by Gulf states to stop using the greenback for oil trading.

The dollar’s future as the world’s top currency was thrown into doubt on Tuesday as a report said Arab states had launched secret moves with China and Russia to stop using the greenback for oil trading.

They would instead switch “to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council (GCC), including Saudi Arabia, Abu Dhabi, Kuwait and Qatar,” added Fisk.

Gold, viewed as a safe-haven investment, has won back favour in recent months as the global economy struggles out of its worst slump in decades.

The run-up in gold has been largely driven by weakness in the dollar, which makes dollar-priced commodities cheaper for holders of stronger currencies, boosting demand.

Gold also wins support from fears about higher inflation because the metal is widely regarded by investors as a safe store of value.

  1. amodedoma says:

    Currency is the life’s blood of the economy. Normally money that’s invested flows from one investment to the next, not so with gold. Investments in gold are like blood clots, they might get bigger, but they don’t carry oxygen or nutrients, and if the get big enough they’ll kill ya.

  2. soundwash says:

    the heck with gold, silver has
    real value as an industrial metal silver,and more importantly,
    as a *universal medicine*

    the arabs own way too many
    dollars to announce something like
    to this *this year* (and in fact,
    they already have issued a
    statement to the contrary)

    this story is just a psyop by
    our gov and The Fed to redirect
    anger and suspicion away from them
    and attempt fester misplaced arab hate to garnish support for an Iran attack.

    no doubt the british-israeli crew are behind it.


  3. Greg Allen says:

    Bush and the Republicans preached and preached about making America strong.

    All the while they where hell-bent on fiscal policies that made America weaker.

    Nobody can claim they didn’t see this coming. I, myself, warned you guys about the de-linking of US$s from oil a couple of years ago. This is huge.

  4. Uncle Patso says:

    Which weighs more, an ounce of gold or an ounce of feathers?

    Answer: the gold! (Gold is measured in Troy ounces, 12 to the pound, whereas feathers are weighed in Avoirdupois ounces, 16 to the pound.)

  5. yanikinwaoz says:

    This time last year the money was chasing barrels of oil. Now it is chasing gold. All are little bubbles designed to separate money from the “Bigger Fool” who gets left holding the overpriced commodity.

  6. nv says:

    An interesting post, I was just watching a youtuber by the name of Vision Victory and he made similar comments about gold prices etc. The video can be found on my blog, along with other videos.
    Many thanks


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