Tag Archive: chinese yuan

The Case for Gold Has Never Been Stronger

The last few days have shown what can happen as investors get nervous and even start to panic. Yesterday’s declines in equity markets, which were over 3 percent, were the largest drop so far this year and showed just how seriously investors are taking the ongoing U.S./China trade war. the case for gold has never been stronger. As President Trump implements additional 10 percent tariffs on another $300 billion of Chinese goods, China has responded by devaluing its currency. The yuan moved past the key... Continue Reading

Gold as a World Currency

It’s no secret that gold, silver, and other precious metals are viewed as the embodiment of wealth. After all, these precious metals have been used by man for thousands of years to facilitate exchange, back paper currency, and protect assets. Not too long ago, the United States and other parts of the world were on the gold standard in which every unit of currency had to be “backed up” by gold. Could a return to a gold standard be seen? Could gold simply become a... Continue Reading

Why Are Nations Adding to Gold Reserves?

Governments and their central banks represent the largest players in modern financial markets. If these financial superpowers are acquiring and stockpiling more gold, maybe you should consider an allocation in gold as well. Gold’s importance to the global economy cannot be understated. The reality is that if gold were simply a relic of the past without true purpose or value, central banks would not buy and hoard the yellow metal. What do these central banks know that you don’t? Central banks began adding to gold... Continue Reading

3 Simple Reasons For Dollar Downside

It’s no secret that the dollar and gold often exhibit a negative correlation. Because gold is a dollar denominated commodity, a weaker dollar makes gold relatively less expensive for foreign investors while a stronger dollar makes gold relatively more expensive. It’s also no secret that the dollar has been losing value for years. In our view, loss of value is inevitable when it comes to fiat currency. Unfortunately for users of fiat currency, as their value declines they buy less goods and services. While all... Continue Reading

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Chinese Yuan May Get Reserve Currency Status This Year

The Chinese yuan has been gaining traction and acceptance among global currency markets. As the Chinese economy continues to grow, China will seek to continue to forge its place among leadership in the global financial marketplace. According to a report today by BBC News, the yuan could get reserve status this year… This is huge. This is another step towards the yuan becoming the global reserve currency of choice. When the International Monetary Fund this week stated that it does not consider the yuan to... Continue Reading