NEW: GOLDBROKERS TREND LIST

Gold is the best warranty for the storage of wealth. In times of turmoil with an insecure global economic and political outlook, gold can be considered as an ideal investment, that can guarantee - unlike the paper currencies - a steady value, over many years.

It makes sense in times when the hitherto accepted repositories of value such as the key currencies Euro, Dollar and Yen are all simultaneously suffering from bouts of indisposition, to publish on www.goldbrokers.li a running updated list, that shows the events that may influence the value of the respective currency.

It is a paradox that the the demand for a materialistic commodity such as a currency, is mainly determined by a question of faith. Confidence in the future of a country for example, can outweigh even the largest of current account deficits. And indulgence for worldwide demonstrations against the Iraq war, can weaken the positive impact on the rate of a currency, even of the largest of armouries. Similarly the present worldwide high unemployment rate will entail an increased deficit in all the countries under review and weaken the confidence felt for their currencies. On top of such run of the mill difficulties the constant worry in Japan is the daily climbing new indebtedness of the country, owing to the need for the BoJ to bottle feed the commercial banks, whose reserves have been eroded by the advances they made to their virtually bankrupt customers.

The criteria, that influence -in our opinion-the rate fluctuations of the key currencies, will be set out by us on a daily basis, below.

Catalogue of criteria that influence the key currencies

In times such as these, gold is the ideal investment, because major currencies are subject to feverish and irrational fluctuations owing to interest rate changes, whereby weak players hike interest rates, in order to stop inflation and to attract foreign investment, whilst economies with a balanced foreign-payments account and a marginal inflation rate, such as the Swiss, can observe a downward trend of their currency, resulting in a depreciating rate against the dollar, in spite of the woes of the US budget as well as the massive deficit of its foreign payments account. Nevertheless it is known that such temporary phenomena can in times of emergency just as quickly reverse the trend and catch unwary investors on the wrong foot. We have set up a list of questions in order to enable you to reach a sensible investment decisions for yourself.

The Euro

1.) Political Stability
The new European Union Charter was thrown out by the electors of France and the Neherlands in 2005 and satisfaction with the EU has reached a low point, because the EU is seen as the cause of the parlous state of the labour market in most West-European countries. Is it likely that the EU has a chance of long term survival if the negative sentiments outweigh the positive ones in the member states of the EU? Have you ever bothered to ask yourself the question as to what will happen to your hard earned Euro investments, should the monetary union be unexpectedly dissolved?

2.) The 12 signatories of the so called Maastricht-Treaty, by giving up their own currency, had agreed, that to guarantee a stable new common currency called the Euro, it was essential that the budget deficits of the member countries not should exceed 3% of their gross national product. Yet with the exception of a few smaller members, the major players such as Germany, France and Italy are all substantially above this limit.

So ask yourself: has this entity a long term chance of survival, if budget deficits are consistently in excess of the self imposed limit? And is there hope of improvement if the perpetrators go unpunished?

The Dollar

1.) Can it be right to invest in a currency, that represents the economy of a country, which has evidently gone off course, with an astronomically high national debt, as well as non-stop foreign trade account deficits ?

2.) Can you entrust your money to an exchange, that permits the largest insurer of the country, called AIG, to misrepresent its earnings by $ 1.700.000.000 and lets off the perpetrator, whose identity is known, without jailing him, in spite of this massive fraud?