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Can You Buy Gold at a 25% Discount? Yes... if You Buy It in US Dollars

Mike Maloney 
JUN 24, 2019

If you buy gold in US dollars, you’re in luck, because whether you realize it or not, you have made a killing against almost every other currency in the world.

It may be hard to believe with gold about 25% below its all-time US-dollar high, but 72 different countries have seen gold hit an all-time high in their currencies this year.

Like in Canada. Live north of the United States border, and this is what your gold chart looks like right now.

Want to buy gold in Australian dollars right now? It has never cost more.

But both of those pale in comparison to how well gold has held its value against the Argentine Peso.

For so many gold investors worldwide, the value of their fiat currency is at an all-time low vs. gold. 

But not for the US-dollar buyer. Not yet.

Keep in mind all four charts track the exact same thing, the gold price, over the same time period. The Canadian and Australian dollar and Argentine Peso buy the least gold they’ve ever bought; which also means gold buys more Canadian and Australian dollars and Argentine Pesos than at any time in history.

The world-renowned Montreal Jazz Festival starts this week. Ever dreamed of taking a vacation Down Under? Want to explore Buenos Aires at jaw-droppingly low prices? Bring along some gold, sell it locally, and get more Canadian or Australian dollars or Argentine Pesos in exchange than ever before.

Gold is doing its job.

Canadian, Australian and Argentine investors who bought gold years ago have maintained their purchasing power.

And the window is open for US investors to do the same today.

Despite gold buying so much international currency in so many countries, gold is currently 25% below its all-time high in US-dollar terms. 

Why's that? Because the dollar has been experiencing a mega rally over the past few years. If you're from the US you might not have noticed. But by virtue of not exchanging your USDs for some other currency over the years, you’ve made a great foreign-exchange investment.

And your reward is this: While no less than 72 other currencies now buy less gold than ever, your US dollars essentially buy that exact same gold at a 25% discount.