what causes currencies to rise and fall well the best way to explain all this is if we go back in time to before the 2008 olympics in beijing which was an amazing olympics so we’re back in time now and the year is 2006. and i actually met back then with a cfo of united technologies
which owned the otis elevator brand back then they spun it off a couple years ago and he told me that based on their research and their order book he told me that in the next five years china was going to build more buildings than the cumulative total of all buildings ever built in every country
since the beginning of time he also told me that every single year the chinese government builds the equivalent electricity grid infrastructure of the united kingdom staggering statistics eh so the year is 2006 right now and let’s pretend i’m the chinese government now if i want to
build all this stuff to show the world how modern china is in 2008 at the beijing olympics then what i have to do is i have to buy a lot of natural resources like oil copper aluminium iron ore and many other raw materials now three countries that i want to buy those aforementioned natural resources
from are australia canada and brazil as those three countries are very natural resources rich so as the chinese government if i want to buy natural resources from those three countries then what i have to do first is i have to exchange my currency which is the remnb i have to exchange my renminbi
and buy canadian dollars or australian dollars or brazilian dollars brazilian real and i have to buy those three affirmation currencies because then i can use their currency to buy natural resources from companies in brazil australia and canada okay and so i’m buying a lot of commodities so i
need to buy a lot of those three currencies which drives up the value of those currencies a lot now moving on to another sub-topic here with currencies but another thing that makes currencies go up and down is when a country makes their Interest Rates go up or down by changing the
supply of their money and so if countries decrease the supply of their money then the prices of that currency increases meaning Interest Rates increase and investors want to invest in that currency if it has a higher interest rate than other currencies but here’s the catch it
has to be a stable economy because when we see Interest Rates that are way too high for some Bonds or currencies or or Dividends if the dividend Yield is way too high on a stock then there’s usually a reason the reason is
that that company or country could go bankrupt so we always have to question why rates are high in a certain country another reason why some currencies outperform others is scary global economic environments okay so for example if there’s a global crisis of confidence and investors want to
invest in a safer currency which is why in 2008 the us dollar outperformed and the same thing happens with gold as a commodity a little side note when people are freaking out about the global economy usually the price of gold goes up a lot and so my favorite go-to investment when the world’s
falling apart is usually gold i buy gld which is the etf for it and last thing i’ll say about currencies is of course it’s all relative to each other you
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Dollar stabilities because infrastructure ensure the logistics is solid so less fluctuate
Frequency of stock and currency meeting make short or long run rate of exchange and the contrast of economic activities among big economies make over or under estimate needs or want in supply then disruption in transportation or fuel price can change sudden move out of balance and spiral down is devastating
Thank u
very informative, thank you !
Good video
This is beautifully explained. Thank you.
I know it’s a very simple concept but I have a hard time grasping it before now. Thank you.
HI good
European Central Bank
Only central government LOW INDIAN OCEAN.
DAR AL KHILEG news paper
You have
How do any of the countries in the example value their copper or aluminum?… For example Canada has 100 tons of copper… n let's say it has 1000 CADs printed. How does it value a 1 ton of copper now? Furthermore. Isn't it more accurate to say that the price of copper in canada is what goes up instead of the value of CAD?
In 1980 they promised us if we would buy dinars. It would be only five years and we would be very wealthy that they would revalue and we would get a fortune I thought to myself even if I get a few thousand dollars it’ll be better than nothing so I’ll try it , through all the decades, all the ebbs and woes, this is March 23rd 2025 still nothing
Simple answer, NIXON in 1971.
Currency 💵 power is based on resources is one explanation… but i think sell and buy trade if supply and demand makes more sense… Petro dollar 💵 is an example of resource backing money 💰, but market trade and goods also back dollar 💵 policy politics too
Uh 🙄 that didn’t explain it 😂
This is too complicated, better deal with gold
Perfect and straight to the point 👍
Free food???or Profit????Seasonal wealth ?¿?Or recycled wealth????
What color seal do you have ????A seal for food or a seal for wealth?????
Thank you from canada❤❤❤
apologies if naive:
is gold completely arbitrary then? it only works because we believe it works/holds value?
thanks for the review
If you buy/invest in gold, you don't even receive the gold.
You just get some certification saying "you own xx amount in gold".
Am I wrong?
I thought about doing it years ago from a reputable company, or so I thought, and going by memory, I don't believe I even receive the gold I invest in.
They hang onto it.
How in the hell can I trust them?
What if they go belly up or it was all smoke and mirrors.
I'm just reluctant to invest in gold if I don't even receive it to keep in a safe.
I understood until 2:22. then it got too confusing lol
thank you for helping understang why the dolar goes up or down
what is the main cause
「目標を指定してお金が必要」、
Yes…. But how wealthy are you Sir ?
「目標を指定してお金が必要」、
Thank you for an amazing explanation, i ve always wondered this ! Please keep educating
great video. Big fan from Australia
As usual Christ, your Commentaries, are Informational, insightful and historical .knowledge concerning the countries
That have natural resources. China really study the economic markets!
I remember when my grandfather spoke on the importance of Gold.
Back in the 1960's
Thanks for sharing 🙂
Hey Chris, today's upload seems to be what we're talking about in comments from yesterday 😉👍. Thank you. BTW, I'd like to recommend looking at Sprott's Gold & Silver ETF's as perhaps a much better and safer option than the GLD & SLV. Ticker: PHYS & PSLV, they are offered both on the TSX and NYSE, and are "Allocated" Gold/Silver Holdings. It sounds like Sprott actually holds the amount of physical bullion as ETFs owned, stored in the Canadian Mint. It sounds as though it's actually got allocated gold to your name when you buy. BUT with GLD and SLV, sounds like there may not be nearly enough bullion in storage to account for the ETFs owned, and the gold/silver certainly isn't "allocated". Sound alike with GLD and SLV, in a crunch they'd only honor the paper fiat currency amount in a situation where trust was lost and there was a run on demanding delivery for bullion en masse. I believe the point in owning Gold n Silver is for security insurance and protection against lost faith in fiat currency. In that case investors would definitely want to be able to take possession, delivery of the metals they "think" they own. In which case Sprott Holdings is perhaps superior 🤔?