Wednesday, August 3, 2016

Gold Has Not Peaked Yuan Renminbi Will Replace The Dollar currency crisis

financial crisis, trade war, china, yuan, gold backed, currency, united states, russia, dollar, trade wars, money, barter, silver, gold price, exchange rate,
According to a spokesperson at Canada's largest bank RBC, the current gold price has no legitimate support because they say, it stems from record breaking investor demand in gold ETF 's and a reshuffling of asset positions at Comex.  It sounds as if even the bank's are running low on excuses to justify their bearish positions on gold - They say that without a new risk off event the price should fall back to a long term outlook level of around $1240.
Seraphim's opinion - You want risks ? You got'em !  How about a 180 degree change in the relationship with Russia ? or an admittance that the United States is fighting an entirely different war in the middle east than what's been publicly declared ? or how about a new trade war with China ?  This is just the tip of the iceberg of what awaits the US in the coming year if Donald Trump becomes president as the polls have already tipped in his favor.
At a time when investor confidence is not just low but non-existent, money printing continues unabated, and the US dollar remains overvalued (even if just because every other currency is being devalued so as to boost gdp) 2017 is on track to be the riskiest year of the millennium.
Historically, gold's role proved to be irreplaceable - in protecting national economic security during times of financial crisis, geopolitical crisis, currency crisis.

China Will Use Gold's Unique Position to Elevate Itself

China has long sought to replace the dollar in foreign transactions with its own currency, and that started happening this year - even Canada is on board with its own Yuan clearing bank set up in Toronto.
The ultimate goal however is to usurp the dollar's position in global finance.  The only time that could happen is during a time of collapse in currency markets - even if it is just temporary gold will become the default currency of choice.  If China is the only country capable of supporting its currency with gold (aka the yuan renminbi is gold backed) then the yuan will have won !