Chart Of The Day: These Two Fiat Currencies Are On All-Time Lows

in investing •  4 months ago 


  • In last weeks “safe haven” assets like gold, silver, bonds, Bitcoin jumped.
  • Some fiat currencies are weak. At least one fiat currency is on all-time low compared to gold, and another one, compared to Bitcoin
  • Will this safe assets, like gold or bitcoin, surge further?

Capital markets are volatile in the last weeks, there are economic growth concerns, interest rate concerns and extended “trade war” fears. Since China let the yuan devaluate, the market is speaking not only about a trade war, also about currency war(s). More and more data is showing central banks are hoarding gold as safe asset.

Bitcoin stable on a high level

In this environment, “safe harbor” assets like sovereign bonds, gold, silver are surging. For some people worthless, but for many cryptocurrency-fans a secure shelter, Bitcoin is relatively stable near 11,500 USD. Not so far from all-time highs, anymore. (Bitcoin jumped 300-350 percent from the December lows. Another 70 percent approximately would be enough to make history again.)

cod two fiat currencies gold1.jpg
(Click to view in higher resolution. Chart courtesy of

But some struggling fiat currencies are already less worth compared to gold or Bitcoin than anytime before. For example, the British Pound (GBP) was never so cheap in gold terms, or, gold was never so expensive in GBP. At least, in the longest period which I could find, from 1984. (See here.) The same seems to happen with the Canadian Dollar, at least since 2008, the gold was always cheaper in CAD. (See here)

The United Kingdom slums into recession, the Brexit caused a huge uncertainty in the economy. British pound is on a two-years low (compared to euro).

1 BTC=80,000

The Turkish Lira is a very inflationary currency, the last data showed 16.65 percent per annum. The exchange rates seem to be stable since the big interest rate hike from autumn, though. But last year the lira fell a lot and this year the surge in BTC caused the price going to a new high.

End of 2017, the Bitcoin topped by 77,300 lira approximately. This June, the price reached 80,000 liras. (As Bitcoin neared 14,000 USD.) Now it is some lower, by 63,000.

New peaks on the horizon?

Bonds seem to be very expensive, with negative yields in many countries (in Europe, Japan in the first line). Stocks are overvalued by many indicators, although, other experts have different opinions. Commodities are depending on growth and economic growth outlook is not very positive.

Possibly we will see much more all-time highs in gold, Bitcoin and other safe-harbor assets in the next months, maybe years.

The series “Chart Of The Day”

I started a series with the title “Chart Of The Day” because I see every day interesting events or phenomena on the markets or in the news. Other parts here:

The last ones:

Older ones:

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Thank you. I wrote this before.