Precious metal prices have struggled to combat the recent appreciative momentum of the dollar. The chart below shows changes in gold (Blue) and silver (yellow…or “gold”) prices along side changes in the relative value of the dollar against a basket of global currencies. Silver clearly has struggled more than gold, though other factors might be at play.
Both metals serve as havens for people who might lose trust in their currency. However, so does the dollar. Currently, we have a world filled with countries trying to devalue their currency, especially in Asia. Silver and gold charts look far less drastic when they are priced in currencies other than the dollar. The question becomes: could global currency wars ever boost precious metal demand enough to see a rise in the dollar based price? Or, would such currency depreciations boost dollar demand enough to render the precious metals jump meaningless, in dollar terms?