Record lows and highs are all over the finance news and as Oil and Gold have rolled past the key psychological barrier of $100/barrel and $1000/ounce you’d be forgiven for wondering why they are still valued in a currency that seems in a death-spiral.
These old favourite commodities are great points of refuge without a doubt as the dollar
plumbs the depths of the currency markets. However, one valuation is essentially a mirror of the other with the much-criticised Euro holding it’s own in spite of Societe Generale’s erstwhile suicidal tendencies being blamed for economic woes.
And you will feel this in the summer when converting your pounds before heading off to the sun; a near 15% reduction in your buying power.
Your £500 spending money will now get you 641 Euros compared to the 735 you picked up last year.
Watch out if you’re in the middle of buying that dream property abroad, a fixed price in Euros won’t help when you’re earning in Sterling.
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