Effect of Yuan Revaluation

[Vince]

Hi Dennis,

With the mounting pressure for China to revalue its undervalued currency, what is your take in opening a fixed deposit account for the reminbi for a one-year period?

Also, how would a stronger yuan affect the prices of gold and silver?

Appreciate your advice on the above. Thanks.

Vincent

[Dennis Ng]

Hi Dennis,

With the mounting pressure for China to revalue its undervalued currency, what is your take in opening a fixed deposit account for the reminbi for a one-year period?

Also, how would a stronger yuan affect the prices of gold and silver?

Appreciate your advice on the above. Thanks.

Vincent

Hi Vince,
I think long term, it is clear that China Reminbi will be stronger than current level, 1 year may not though.

I don't think there is any direct relationship between Yuan and prices of Gold and Silver. However, interestingly, in recent months, China sold over US$30 billion of U.S. Treasuries and reportedly re-invested the money into Silver.

Amongst top 10 countries in the world, China also has the lowest percentage of Foreign Reserves invested into Gold, if I didn't remember wrongly, the figure is only 1.5%, while most other countries have at least 5% invested.

Thus, do you think China is likely to buy or sell Gold and/or Silver in the next few years? I think the answer is pretty obvious based on logical reasoning.

[Vince]

Hi Dennis,

Thanks for your unreserved sharing. I'm blessed to have you as my mentor and this learning forum.

Regards,
Vincent

Vincent

Hi Dennis,

With the mounting pressure for China to revalue its undervalued currency, what is your take in opening a fixed deposit account for the reminbi for a one-year period?

Also, how would a stronger yuan affect the prices of gold and silver?

Appreciate your advice on the above. Thanks.

Vincent

Hi Vince,
I think long term, it is clear that China Reminbi will be stronger than current level, 1 year may not though.

I don't think there is any direct relationship between Yuan and prices of Gold and Silver. However, interestingly, in recent months, China sold over US$30 billion of U.S. Treasuries and reportedly re-invested the money into Silver.

Amongst top 10 countries in the world, China also has the lowest percentage of Foreign Reserves invested into Gold, if I didn't remember wrongly, the figure is only 1.5%, while most other countries have at least 5% invested.

Thus, do you think China is likely to buy or sell Gold and/or Silver in the next few years? I think the answer is pretty obvious based on logical reasoning.

[Dennis Ng]

Hi Dennis,

Thanks for your unreserved sharing. I'm blessed to have you as my mentor and this learning forum.

Regards,
Vincent

Vincent

Hi Dennis,

With the mounting pressure for China to revalue its undervalued currency, what is your take in opening a fixed deposit account for the reminbi for a one-year period?

Also, how would a stronger yuan affect the prices of gold and silver?

Appreciate your advice on the above. Thanks.

Vincent

Hi Vince,
I think long term, it is clear that China Reminbi will be stronger than current level, 1 year may not though.

I don't think there is any direct relationship between Yuan and prices of Gold and Silver. However, interestingly, in recent months, China sold over US$30 billion of U.S. Treasuries and reportedly re-invested the money into Silver.

Amongst top 10 countries in the world, China also has the lowest percentage of Foreign Reserves invested into Gold, if I didn't remember wrongly, the figure is only 1.5%, while most other countries have at least 5% invested.

Thus, do you think China is likely to buy or sell Gold and/or Silver in the next few years? I think the answer is pretty obvious based on logical reasoning.

Hi Vince,
you're welcome. I'm blessed to know you as well....since the days when both of us volunteered for different Youth Executive Committee under PAYM.....