US Global Investors released the results of the strongest currencies around the world in 2014. The report brought some expected and not-so-expected results. To no one’s shock, the US Dollar was the strongest-performing currency of them all. However, the one that came in second was a real surprise.
Was the runner-up one of the commodity-based currencies such as the Australian or Canadian dollars? Nope. The Aussie dollar ended the year as the 9th strongest currency and the Loonie finished in 8th.
Was it the Chinese renminbi? Not quite – it closed the year in 4th place.
Was it the Indian Rupee? It was definitely in the running, just behind the runner-up in 3rd position.
So which currency was the next strongest behind the US greenback?
It’s been around for thousands of years… the currency that Wall Street, investment banks and central banks love to hate… the “barbarous relic” that doesn’t pay dividends or interest… Gold.
Although the nominal price of gold hasn’t done much over the past few years, these results are more evidence that fiat paper assets continue to decline – while physical gold is still a good hedge against inflation and a store of wealth.