Chinese Currency – Reserve Status – You & Your Investments


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Chinese Currency & Reserve Status

Chinese Currency to achieve reserve status – what does it mean for the stock market, the precious metals market and you?

The International monetary fund will give the Chinese currency known as the Yuan or Renminbi reserve status. Sometimes there is confusion on the correct name. To clear up some of the confusion Renminbi means “People’s Currency” and the name of their currency, while the Yuan is the unit of currency.

In this audio interview on www.preciousmetalsinvesting.com Ted Sudol and Paul Mladjenovic talk about the Chinese currency, reserve status and what it will mean for both the US dollar and your investments

Some commentators believe there will hardly be any effects from this. They feel the dollar will not be challenged in any way and point to China’s closed policies and many of the changes they have to make politically to cause people to have full faith in their currency. The fact that it will take some time for the Yuan to challenge the dollar is no doubt true.

However China appears to be positioning itself for dominance in the future. commentators have noticed the record gold buying by China for the past several years. This is just counting their official purchases although other commentators feel when you add that to their “unofficial” purchases something that is potentially seismic is going on.

The US gold picture seems much hazier. No one knows how much gold the US has. The government has refused calls for independent audits.The last audit was done in 1950. When Germany recently asked for its gold back that they stored here for safe keeping they were told that they could get it back in 7 years. I don’t know about you but that doesn’t fill me with confidence that the US government actually has the gold other countries have been storing here for “safe keeping.” If it is revealed that China is sitting on a hill of gold and the US just has empty gold vaults I think people’s perception will change about the relative value of the currencies.

As the Yuan is used in more international trade countries and businesses that once could only conduct business through an exchange of dollars will not have an alternative that completely sidesteps the us dollar. That change though gradual, will certainly be seismic.

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