Commodity Trade Mantra

Posts Tagged ‘Yuan’

China's Increasing Presence in Gold Market - An Obsession to Prop up Yuan

No doubt that Chinese officials see gold as an important asset for the future. Is China’s quest to put the yuan on the world stage closely related to this involvement in gold? Will China actually come up with some kind of a gold-backed currency? Actually, China’s fixation on gold is a story of diversification that can lessen the devastation of central planning gone wrong.

Will US Dollar Collapse Over Another Debt Ceiling Fight?

The US federal government is about to hit the debt ceiling, which stands above $18.0 trillion, and Congressional Republicans refuse to raise it. The last debt ceiling fight led to a downgrading of U.S. debt. Another blow to the credibility of the U.S. government could be devastating. Could a US dollar collapse be around the corner?

Why QE4 Is Inevitable - What could turn Sentiment more Positive?

According to Deutsche, and soon according to virtually all sellside strategists who are slowly but surely grasping the significance of what we have been warning for month on end, QE4 is inevitable. The only problem is that when the Fed pivots from “imminent rate hike” to QE4, it will loose the last shred of credibility it had left. The Fed is now completely trapped.

What If The Market Crash Is as Rigged as Everything Else?

There is an almost touching faith that markets are rigged when they loft higher, but unrigged when they crash. Who’s to say this crash isn’t rigged? A few things about this “crash” (11% decline from all time highs now qualifies as a “crash”) don’t pass the sniff test. Take your pick–here’s three good reasons to engineer a “crash” that benefits the few at the expense of the many.

Global Markets to Fed: No Rate Hike, Strong Dollar Is Killing Us

There are many reasons for global markets to melt down, but one that doesn’t get enough attention is the strong dollar. The USD has already strengthened by 20%. The damage delivered by the rising dollar has been severe; a move higher from here might prove fatal to emerging markets and faltering U.S. corporate profits.

The Dollar Will Not Be Overthrown in October

Blogs, newsletters, and inboxes are cluttered with dire warnings about an event in October 2015. That will supposedly overthrow the dollar as the global reserve currency and cause a catastrophic meltdown of the international financial system. In fact, nothing of the kind is about to happen. There are important and significant events happening behind the scenes.

Gold Soars After Chinese Currency Devaluation

Over one billion Chinese will soon be scrambling into gold to preserve their purchasing power after the PBOC’s dramatic devaluation announcement. Any day now the PBOC will update its revised foreign reserve and gold holdings. And so the next big leg up in gold will take place when it is revealed that the PBOC had only exposed a portion of its “new” total gold inventory.

Currency Devaluation Coming Soon To China

Keep your eye on the market & listen. The global trend in stock prices is still bullish. The market doesn’t yet see any reason to panic over these big picture forces that are playing out under the surface. We’re going through a mild correction but not enough to turn the market bearish. A Chinese currency devaluation might change that but it could still be a year or so away.

Why Most Pundits are Dead Wrong about China’s Gold

Gold is still the safest asset, and every investor should have some in their portfolio. The price of gold will go significantly higher in the years ahead. But contrary to what you hear from the pundits and read in the blogs, gold won’t go higher because China is confronting the US or launching a gold-backed currency.

Is Credit Deflation Bad For Gold Prices?

Its a common view in financial markets that credit deflation is bad for gold prices, as gold nowadays is regarded as an asset to be sold in the scramble for cash when people are forced to pay their debts. Distressed speculators will come under pressure to sell gold, but this argument ignores the certainty that during a credit deflation government-issued currencies always weaken against gold.

China’s Gold Hoard Will Slay the Mighty Dollar — Here’s Why

China is soon going to want to disclose its gold holdings in an effort to have the yuan join the IMF’s currency basket – the SDR, currently having only the dollar, euro, yen & British pound. If China’s gold reserve is revealed this year and the size of the addition surprises to the upside, it is going to be a major shot across the bow of the U.S. dollar.

Why You Need to Buy & Hold Gold and Silver – Too Many Getting It Wrong

Here is the best reason to buy and hold gold and silver, at any price, especially at these artificially suppressed prices. Gold and silver, are a means of economic freedom & independence from the de facto corporate federal government doing everything it can to enslave the country & succeeding quite well.

China Creates World's Largest Physical Gold Investment Fund For Central Banks

China’s new international gold fund expects to raise 100 billion yuan or $16 billion. About 60 countries have invested in the fund, which will in turn facilitate gold purchase for the central banks of member states to increase their gold holdings. The new project marks another step forward in the internationalisation of the Yuan.

Why Most Gold Bugs & Bloggers are Dead Wrong About China’s Gold

China IS acquiring thousands of tons of GOLD & creating new multilateral lending institutions. China WILL announce an upward revision in its official gold holdings in sometime. But the reasons for the acquisition of gold & the updated disclosures, if they happen, are NOT the ones the blogosphere believes. Herein is the Truth.

What A Cashless Society Would Look Like

Those who generate real wealth & employment need support, not penalties on how they choose to go about their business. A cash ban does not address any substantive issues. What is needed is a sensible economic proposal & political courage to implement a Cashless Society, which so far seems to be lacking.

The Next Gold Bull Market Starts Before October

China believes the renminbi is “ready for reserve status.” What’s the connection to gold? If Chinese officials seek “reserve” status for the currency, they’ll want to announce their updated gold holdings beforehand. Demonstrating they hold ample gold reserves puts the currency on more solid footing.

China One Step Closer to Becoming World’s Gold Hub

China, the world’s largest gold producer & buyer, feels its market weight should entitle it to be a price setter for gold bullion. The benchmark London ‘gold fix’, is under scrutiny because of long-running allegations of price manipulation. The New Chinese gold price benchmark may be launched before the end of the year.

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