GOLD 0.51% $1,391.7 gold futures

Gold, page-53

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    "Changes coming?"

    Small change.

    There are about $280 billion in SDRs on issue. The current weightings (2010) are USD 41.9%, Euro 37.4%, Yen 9.4% and the Pound 11.3%.
    https://www.imf.org/external/np/tre/sdr/sdrbasket.htm

    Let's assume the the Yuan is admitted with a 10% weighting, and the weighting of each existing participant are reduced proportionally:

    Screen Shot 2015-10-23 at 10.51.39 PM.png

    The shift might cause the selling of $11.7 billion in US Treasuries as reserve assets are reorganised.

    That is not going to collapse the US treasury market and cause a run on the dollar. So if the Yuan is admitted to the SDR basket, I do not expect disruptions to currency and bond markets that might justify investment in defensive assets like precious metals.
    Last edited by timber1956: 24/10/15
 
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