Gold priced in a basket of commodity currencies is on track to set a new all-time inflation-adjusted monthly average high for February 2011. Commodity currency gold will top the previous all-time high set 31 years ago in January 1980.
MineFund’s Commodity Gold Price Index (CGX) prices gold in the most liquid “commodity currencies”. The currency basket is weighted by the value of exports of ores and beneficiated ores from the issuing countries. The basket consists of the Canadian dollar, Australian dollar, South African rand, Brazilian real, and Chilean peso.
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A commodity currency means that the money’s value is determined in large part by extractive industry activity in host countries. The fortunes of these natural resource based economies, like South Africa, are tightly tied with commodity price cycles.
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