Both gold and the euro have now lost around 10% of their value against the US dollar since it began rallying last December. But European investors looking to protect their capital during this week’s political turmoil would have done well to switch into the yellow metal.
Priced in euros, gold has gained nearly 5% from the end of 2004. Weighted against a basket of the world top 5 currencies, in fact, it has held its value over the last 5 months. It’s appreciated by 34% since the start of 2002, and the uptrend remains intact today.