Comments on: Pity Poor Pound

By: Matthew

Matthew — Thu, 15 Oct 2009 16:22:14 +0000

I don’t know why people get so worked up about this. The drop in sterling is doing exactly what it should do – relieving stresses in other parts of the system. Thank God we’re not in the euro. They’ve gone quiet for the moment, but believe me the French and others will soon be screaming again about the strength of the euro against the pound and even more so against the dollar. The one-size-fits-all suit now has a 54 inch chest and keeps growing, and most of the eurozone is looking pretty bloody daft in it.

By: mthomas

mthomas — Thu, 15 Oct 2009 16:09:42 +0000

Very interesting news and data about the pound. I think this is consistent with the general trend of most fiat currencies, that the global economic problems and money printing efforts are leading to a lack of faith in all currencies. And I think this is being reflected in the gold price reaching new all-time highs. I recently read some good articles at http://www.goldalert.com that discuss central banks' easy monetary policies in order to try to prevent any sort of deflation from occurring. One I found particularly insightful is called "Gold Price Up, Dollar Down - Does it Really Matter?" I think these articles are very useful for any investor because they help to explain the investment implications for the fiat currencies, the gold price, and gold mining companies who I think should continue to benefit from central banks' inflationary programs.

By: Mike Dolan

Mike Dolan — Thu, 15 Oct 2009 10:44:27 +0000

good reverse indicator! I guess when the last bull turns bearish is the right time to buy ) One postscript to the blog though is that if central banks were for some reason to rethink this sterling divestment and the trend to adopt SDR-style reserve baskets actually takes hold –then sterling currently holds a weighting of 11% in the SDR but only has little over 4% of world reserves. That would mean a lot of catchup (and for the yen too for that matter) So, may be this is indeed the nadir — sadly we have to wait until Dec 31 for the next comprehensive IMF reserve breakdown for Q3.

By: Gerry Kavanagh

Gerry Kavanagh — Thu, 15 Oct 2009 10:18:42 +0000

Sterling up 1.5% today LOL