Norwegian Crown – A choice for investors over the next 2 years – or gold?
Author: Stig Kristoffersen
David Bloom, HSBC analyst characterized the Norwegian krone – NOK as the worlds best coin.
Time magazine published an article about the crown Norwegian and Norway, under the title "Why the Norwegian krone is the safest currency."
No doubt the Norwegian krone is in good shape. Several cuts in interest rates in recent months has begun to have an effect not seen in any other economies around the world. The final cut is 25 March with a 0.5%, which is the lowest interest rate ever in Norway. It could also be a form of sign of how the global economy yet.
Activities last month showed that the USD, GBP and Yen are in a worse condition than originally thought. No effect on economic measures of his government pays to investors to seek new havens for their money.
The reason that the Norwegian krone is regarded as a safe investment at the moment is the lowest price takers, willing to pay to ensure against Norway in its default on its debt. This price is the lowest among the 10 most traded currencies in the world right now,
The Norwegian krone weak year After the recent oil price reached its lowest level against the euro in December last year.
From the crown Norway stabilized and began to strengthen against major currencies as the USD.
He hoped that the Norwegian krone will continue its drive to consolidate in the next 18 months, said analyst Bloom Times Magazine.
The BNP Norway rose to 1.3% in the last quarter of 2008, like most other major economies Westerners have fallen. Norway is one of the few Western countries with a surplus in its balance the national budget, with a value of net exports.
The battle between the U.S. dollar and the euro has made their relationship up and down within 6 months from a low of U.S. $ in July 2008.
Any forecast that the economy will be stronger in the end, provided that it is the best estimate every day. However, one might expect, of course, countries with higher BNP and balance sheets become stronger. However, for many other variables, including irrational is impossible to make this assumption.
Personally, she clung to the Norwegian krone and raw materials in times of turbulence. As the price of gold in approximately Prognosen 2000 USD / oz in 2 years. Today, riding on the average of 900 USD / ounce.
The motivation for this hypothesis is that there are deposits much larger than gold which is found or found, which means that demand dominate the availability of this material. There is also an associated cost of production gold, making it a real advantage given the standpoint of production and forth from my sight.
About the author:
He has a experience as a civil engineer and geophysicist. He worked mainly in oil and gas sector in the mid-1980s. He wrote several novels and fiction as the author literature of various professionals in the oil and gas, now an editor of a website.
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