To hedge or ...........
Although, Gold is the
best commodity to hold in the current global financial markets, the Chinese
Money is becoming convertible and believed to be a good alternative to hold as
well.
Refreshing
your Memory, in the article called “TALA ARZE BEDOUN MARZ 6”, written on 21st
of July 2011, I Wrote that the gold price has no way but to go up
until a new world reserve currency is defined and come to play.
According to my studies and
research, China is aggressively promoting its currency to be
internationalized and fully convertible by the year 2015.
Many finance ministers and
professionals are acknowledging now that the China currency “Yuan” might be a
good candidate to be a new “world currency reserve”.
During the last few months, some central banks are
openly or confidentially have been buying "Yuan" to hold as part of
their reserve currency. Though gold is still the most valuable asset to hold,
but part of the world cash capital which used to be spent in gold trades are
going to Yuan transactions now.
London has initiated a market to trade the Chinese
currency,and the DIM SUM bonds denominated with “Yuan” are being heavily
traded in Asia and redirecting the world capital toward its currency.
On the other hand, the
likelihood of double dip recession might hurt the commodities including gold
and silver and oil. So in my opinion maybe, Investors should take the necessary
steps to hedge their gold positions and holdings.
I am writing a new detailed article in Farsi regarding
the Chinese activities to internationalize its money , and its
negative impact on the gold prices in the coming months. This article will be published
and posted next week.
Good luck
September 21, 2011
