Commodity Trade Mantra

Posts Tagged ‘Gold Backed Yuan’

China needs a lot of Gold to make-up for the Loss Expected on Treasuries

Right now, China’s reserves are about $3.2 trillion, of which about $2 trillion is denominated in US dollars, and most of that are U.S. Treasury Securities. They can’t dump them. So what the Chinese are doing instead is they’re acquiring gold as a hedge. China is going to be in this position where they lose on the paper, but they make it up on the gold.

Gold And Silver Prices At Current Levels Do Not Matter

There are no reasons to buy paper gold or silver & it is too risky to pay up and buy into a rally, at this early stage. But the reasons for buying and holding physical gold and silver are more compelling than ever, and we expect those reasons to become even more compelling. Price is irrelevant and way, way undervalued.

follow us

markets snapshot

Market Quotes are powered by India

live commodity prices

Commodities are powered by India

our latest tweets

follow us on facebook