Gold
 

I am not a fan of gold and have made some good money shorting it. But I read something pretty interesting the other day. GLD, the gold ETF has more gold then any of the central banks. That is why it is going down and will for a while. China is coming out with their own ETF so that its citizens can buy gold through the stock market. The reason China has ghost cities and the strongest banks etc is that they are drowning in cash. They save something like 14% of their GDP every year. If the Chinese like the ease of buying gold this way, it could move gold back up to new highs.

It will make for interesting times.

There has been speculation for a long time that China plans to make the Yuan a gold backed currency.

TBH at this point I'd rather have my money in a Chinese bank account than a western bank account.

I'm pretty bullish on Gold & the Yuan long term

there is not enough gold, only on paper

Chinese Lead painted Gold is worth more than Bitcoins:2 cents:

Yeah USA will accept this

These days everyone is bullish on the Yuan (RMB) and with good reason - the best bet is to get your Yuan in a Chinese bank account. The problem for Americans is that its now more difficult to get a foreign bank account and some foreign based institutions wont easily give a bank account to an American citizen.

As regards Yuan, its appreciating a lot already.... there are ways to get it outside of China in a bank account like in Hong Kong or even Australia (soon, I think). Not sure on that one.

Do you hold Yuan?

I believe there will be a market crash this summer.

Do you realize that gold is more expensive now that it ever was?<

Not currently no, looking at ways to get into it though. Up until around November I was holding physical gold but I sold it as I was in the process of purchasing property.

At this point I don't want to have any money in $, ? or £s and due to what happened in Cyprus I believe that will set a precedent going forward with depositors in many EU countries i.e. Greece, Italy, Ireland, Portugal etc

I also think it's only a matter of time before banks throughout the EU & UK start charging customers monthly fees for bank accounts which is another reason not to bank in those regions.

There's approx. 1200 tons in the GLD reserve (you can look this up in their filing). Just the U.S. Fed alone has 8100+ tons. There's another handful of countries that have 2000-4000+ tons each as well. Whatever you read about the GLD having more than central banks is not true.

Not to mention that $, ? and £ all have serious debt problems and are currencies which are likely to depreciate over the long term. That said, the downside with all paper currencies is that all countries are forced to engage in competitive devaluations in order to prop up their export economies (even China can't stray too far away from the USD). That's why (after a decent correction) I still view Gold as an excellent long term opportunity.

Still, If you're seriously looking at Yuan then I have to mark you down as intelligent because its the best of all the paper options out there. Make a trip.

I never really understood the long term value of gold..if $ and EU etc really go bust (collapse) then what can you do with gold? wont it become useless ? people will need food, clothes - what can they do with a shiny metal..

Yes, I have done quite well being short gold. Gold is easier to invest in. You no longer need to buy the physical stuff. So Wall Street has been going crazy making new ETF's etc. Once gold was no longer the poster child, it started to go down. I thought it would drop for years.

The ability of the Chinese to invest in gold buy calling their broker might change that.

Yep, I saw that after this post. oops. I still Wall Street has lost their love affair with gold.

Yep :disgust

Although I agree with your point, China is going to be focussing on developing domestic consumption so long term it's a good bet IMO. Over 300 middle class, these are the consumers of the future (and that's just China)

The East will continue to rise in wealth and the West will continue to fall in wealth

Well no one likes being stolen from and Western governments/bankers have sold their citizens down the river and compounded their futures to a life of poverty compared to what we used to have.