WORLD`S SAFEST CURRENCIES
The precious metal can be purchased and kept, and converted to almost any currency as well. Unlike other commodities, gold is highly liquid but has limited supply, not to mention it is not backed by a physical commodity. While anyone can invest in the yellow metal, the US dollar is in favor, which normally trades contrary to gold.
Presuming the economy degenerates or the stock market plummets, gold won’t likely be able to survive the downfall since all commodities collapse in a deflationary environment. During the financial crisis, the metal sustained hefty losses before the Federal Reserve stepped in. The economy should start to bottom upon realizing and accepting deflation. It might take months or years, but this should be a good timing to purchase gold.
Norwegian Krone and Singapore Dollar
What makes the Norwegian krone and the Singapore dollar safe currencies?
Norway has no net debt. Having said that, the Norwegian krone can stand alone and withstand any financial difficulty since it is not linked to the failure of a country or two. The country has impressive economic data despite slumping home prices and some figures not meeting projections. On the other hand, Norway has a disciplined, responsible system, making the nation a good bet in the long run.
Now, let’s discuss Singapore. The Asian country is considered one of the least corrupt countries worldwide, most pro-business, and most open nation in the world. Also, Singapore is known for appealing corporate and personal taxation laws because of the absence of capital gains tax, tax relief measures, double tax treaties, and one-tier tax system.
Being the global currency and its economy the most powerful worldwide, the US dollar is a good bet. As of this writing, the US central bank has $1.5 trillion in mortgage-backed securities and $2.2 trillion in Treasury debt. The currency is in bull mode as of present, and it might last for quite a long time. And the Fed raised interest rates last year and hinted at further rate raises.
Believe it or not, the United States has its own way of finding solutions to each problem. Take this question for instance. Given the Fed’s capacity to bail everyone out, who will rescue the Fed in times of financial turmoil? American taxpayers. In simplest terms, the United States can hold itself up regardless.
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POPULAR FOREX DEFINITION
|12:00||Bundesbank Monthly Report|
|14:30||Foreign Securities Purchases||Apr|
|14:30||NY Fed Empire State manufacturing index||Jun|
|16:00||NAHB Housing Market Index||Jun|
|19:00||ECB President Mario Draghi Speaks|
|20:45||BOC Deputy Governor Lawrence Schembri Speaks|
|23:00||Westpac Consumer Confidence||2 quarter|
|03:30||Monetary Policy Meeting Minutes|