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Crystallex International Corporation is a Canadian-based gold company with a successful record of developing and operating gold mines in Venezuela and elsewhere in South America

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Message: Currency Devaluation and the rush to safe haven

Currency Devaluation and the rush to safe haven

posted on Nov 13, 2008 12:59PM

Thanks for the advice.

Now I'm curious. If a currency is devalued why should that also devalue the main commodidy that the company deals in?

Gold GOES UP if currencies are devalued. The supply of money goes down when the currency is devalued. What happens to the stock price then? You mean to say that the value of their assets are tied to the value of the currency and not their real value?



I thought that being in the stock market during a currency devaluation is a means of protecting your cash... hehe.. protecting cash by placing it in the stock market? Sound pretty crazy...

Likewise... if you have a load (home loan) and the currency is devalued, the hasn't the government just bailed you out of a portion of your loan? What happens to the value to the realestate?



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