Wino Posted October 6, 2009 Report Share Posted October 6, 2009 If this story turns out to be true, it looks like the dollar will no longer reign supreme. Change your dollars to baht before it is too late. Here is the story: LONDON (AFP) – The price of gold struck an all-time high at 1,043.78 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. Gold reached the level in late afternoon trade on the London Bullion Market, beating the previous record high of 1,032.70 dollars an ounce struck in March, 2008. "Gold prices hit an all-time high as the dollar weakens," said Barclays Capital precious metals analyst Suki Cooper. "The dollar weakness appears to be related to ... (reported) secret talks about oil being priced in a basket of currencies including gold rather than the dollar, which has added to concerns about the future role of the dollar in international financial markets." 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. Arab states have launched steps with China, Russia, Japan and France to stop using the dollar for oil trades, British daily The Independent reported on Tuesday, but the report was denied by Kuwait and Qatar and reportedly by other nations. The United Nations meanwhile on Tuesday called for a new global reserve currency to end dollar supremacy, which has allowed the United States the "privilege" of building a huge trade deficit. The Independent's Middle East correspondent Robert Fisk wrote in his paper: "In the most profound financial change in recent Middle East history, Gulf Arabs are planning -- along with China, Russia, Japan and France -- to end dollar dealings for oil." 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. Precious metals consultancy GFMS last month warned that the current upward trend in gold may not be sustainable should global stimulus packages fail to boost flagging demand in the battered world economy and inflation fall as a result. The Group of 20 leaders of emerging and developed nations recently agreed at a summit in Pittsburgh not to roll back massive stimulus measures that helped contain a severe global recession. From: http://news.yahoo.com/s/afp/20091006/ts_afp/commoditiesgoldmetalsprice Link to comment Share on other sites More sharing options...
lvdkeyes Posted October 7, 2009 Report Share Posted October 7, 2009 When I moved to Thailand at the end of 2004 the exchange rate was 41 baht/$, Now it's around 33.40. That's about 8% loss for me. Link to comment Share on other sites More sharing options...
Bob Posted October 7, 2009 Report Share Posted October 7, 2009 When I moved to Thailand at the end of 2004 the exchange rate was 41 baht/$, Now it's around 33.40. That's about 8% loss for me. Highest I ever saw it was 42.5 a couple of years before that. By the way, I think you meant 18.5% loss/drop (7.6/41 = 18.5%). Link to comment Share on other sites More sharing options...
Wino Posted October 7, 2009 Author Report Share Posted October 7, 2009 I think it was back around 1997 or 1998 when the dollar hit 51 baht. Too bad I didn't have the cash or brains to load up the wagons. Link to comment Share on other sites More sharing options...
lvdkeyes Posted October 7, 2009 Report Share Posted October 7, 2009 Actually in 1997 the baht hit 54/$1. I, too, was unfortunate. I didn't have the money or ready to retire at that time. Link to comment Share on other sites More sharing options...
Thaifan Posted October 7, 2009 Report Share Posted October 7, 2009 I am lucky not to need to worry too much about the US$ (excepting that it's decline often affects us all)because most of my assets come in the form of the AUD$. However that has varied from a low of 22 baht to the dollar earlier this year to the present 30 baht per dollar. How long will it last? Do I assume I am in Thailand for good and buy baht now at a good rate or will it get even better? Who knows? The recent Global Economic turmoil has taught us we can never count on anything these days nobody knows what will happen, not even the so-called experts!!! Link to comment Share on other sites More sharing options...
Bob Posted October 7, 2009 Report Share Posted October 7, 2009 While I believe the Thai economy is an absolute mess and, due to the education system in Thailand, will largely stay that way compared to many countries in the region (China, Singapore, Malaysia, India, etc.); as such, I don't know how anybody can explain the baht level compared to almost any other currency. For years, economists throughout the world have been warning us about the upcoming decline of the US dollar. The huge trade imbalances eventually will come home to roost and, of course, many countries have railed against the monetary and fiscal policy (ultimately, deficit spending) of the US for years. Now, with huge debt continuing (and lately projected at 10 trillion (yes, trillion) over the next 10 years, it seems that there is only one direction that the US dollar can go over the next decade or two - in the toilet. Some people for years have joked about how many million Italian lira you need to buy something....and maybe the joke gets turned on the US. The difficult question, of course, is what we US expats do to "play this trend" if we think it's going to happen (I do). I'm not sure of that although I, for one, won't be investing in Thai baht for the reasons noted above. So long as they are politically stable, China, India, Malaysia, Brazil, etc., might be a better bet. And maybe the stocks of some of the better companies in those countries might be the way to partially play the upcoming fall of the US dollar. Link to comment Share on other sites More sharing options...
Beer Chang Posted October 7, 2009 Report Share Posted October 7, 2009 what we US expats do to "play this trend" if we think it's going to happen (I do). I'm not sure of that although I, for one, won't be investing in Thai baht for the reasons noted above. So long as they are politically stable, China, India, Malaysia, Brazil, etc., might be a better bet. And maybe the stocks of some of the better companies in those countries might be the way to partially play the upcoming fall of the US dollar. MEAFX is a way to invest in Asian currencies. Link to comment Share on other sites More sharing options...
Wino Posted October 8, 2009 Author Report Share Posted October 8, 2009 Actually in 1997 the baht hit 54/$1. I, too, was unfortunate. I didn't have the money or ready to retire at that time."Following the crisis, it was decided that the baht be placed on a floating exchange rate which halved its value, to its lowest rate of 56:1 in January 1998. It stabilized again at a rate of about 40:1, which it has managed to stay at since then." This according to http://www.gocurrency.com/countries/thailand.htmThe highest I remember was 51 to the dollar, the above said 56. Link to comment Share on other sites More sharing options...
eleothegreat Posted October 9, 2009 Report Share Posted October 9, 2009 Last month I exchanged a dollar for 47 pesos. The month before that it was 49 pesos. Now it's down to 45. Darn it. Link to comment Share on other sites More sharing options...
Wino Posted October 10, 2009 Author Report Share Posted October 10, 2009 Last month I exchanged a dollar for 47 pesos. The month before that it was 49 pesos. Now it's down to 45. Darn it.At this rate, it will be 40 in the new year. Link to comment Share on other sites More sharing options...
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