RMS 0.49% $2.05 ramelius resources limited

your missing the point we are talking about why gold will...

  1. 1,451 Posts.
    your missing the point we are talking about why gold will contunue rising right?

    The only reason there is inflation in china is because the US is debasing its currency. There is two ways to stop inflation in china, either let the yuan fully float or start buying commodties in yuan.

    All this talk is completely irrelevant because whilst commodities are priced in USD, china pegs the yuan and the US debases its currency gold will rise.

    Are any of these 3 factors going to change in the next 6 months, 12 months ?

    Commodities priced in USD mmm no whilst US is the worlds only super power and wants to stay so they will use force to ensure commodities are priced in USD. PS they are mainly concerned with oil been priced in USD becuase its the driving force of every economy in the world. There is serious advantages to having the worlds reserve currency and they won't give it up easily.

    China unpegging the yuan, yes slowly they will probably increase maybe 5% per annum and start internation trasnactions in yuan. IMO they wouldn't be ready for a float for at least 5+ years and the US will try to stop them making it a rival currency.

    US debasing its currency well. Apparently QE2 is going to stop in july? I doubt it in fact next week i expect BB to announce further QE. They are already "reinvesting" proceeds from their 12 trill in investments on the feds books into bonds. Whilst employment is above 8% , interest rates at 0% and until there is even a credible plan to control the contries debt the currency will weaken.
    IMO any turna round in these factors in the US is years away.

    The worst thing for gold IMO is if Donald Trump becomes US president and the goose starts full on confrontations around the world.

 
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