Thanks for viewing,
This just comes after looking at gold vs a number of different currencies like XAU/AUD which and XAU/NZD both of which have set new all time highs. The value of gold is one thing, the value of your home currency is a another thing. This is why people hold gold - to protect themselves from the slow and steady (or not so slow and steady at times) devaluation of the currency.
Since the overseas markets are mostly down over the past 18 months, bond yields are near all time lows, and central banks are seemingly starting a new monetary easing (currency devaluation) cycle there seems not to be many reliable stores of value in the market. Except much maligned but very reliable gold that has played that role countless times over thousands of years. Here it is going parabolic once again - a mix of rising USD gold prices and rupiah depreciation vs USD.
Normally I view parabolic moves with a high degree of suspicion, and if gold sets new all-time highs in USD terms - which a lot of people expect to happen - who knows how high that will be in IDR terms. Gold is well utilised in Indonesia as a store of value after recent (2013 to now) steady and the sharper steeper devaluations on 1998. I wonder if, looking back at the gold/idr price since 1997 you can point to a time where it would not have been a good time to buy gold? Because in a lot of economies, there is no such time. The right time to buy gold in a weak currency is now.
This just comes after looking at gold vs a number of different currencies like XAU/AUD which and XAU/NZD both of which have set new all time highs. The value of gold is one thing, the value of your home currency is a another thing. This is why people hold gold - to protect themselves from the slow and steady (or not so slow and steady at times) devaluation of the currency.
Since the overseas markets are mostly down over the past 18 months, bond yields are near all time lows, and central banks are seemingly starting a new monetary easing (currency devaluation) cycle there seems not to be many reliable stores of value in the market. Except much maligned but very reliable gold that has played that role countless times over thousands of years. Here it is going parabolic once again - a mix of rising USD gold prices and rupiah depreciation vs USD.
Normally I view parabolic moves with a high degree of suspicion, and if gold sets new all-time highs in USD terms - which a lot of people expect to happen - who knows how high that will be in IDR terms. Gold is well utilised in Indonesia as a store of value after recent (2013 to now) steady and the sharper steeper devaluations on 1998. I wonder if, looking back at the gold/idr price since 1997 you can point to a time where it would not have been a good time to buy gold? Because in a lot of economies, there is no such time. The right time to buy gold in a weak currency is now.