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Gold Pegged to Chinese Currency

FunnyMoney

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#1
The Chinese currency moves pretty much in lock step with gold.

Gold goes up, value of the Chinese currency goes up.
Gold goes down, value of the Chinese currency goes down.

For roughly two years, since the Shanghai Exchange's inclusion of precious metals trading, gold has pegged to the RMB.

On short term charts there have been a few periods of divergence and day trading charts fluctuate a lot more.
However, over medium term and now even monthly and quarterly charts, the correlation, gold to the Yuan, is strikingly exact.

Well then, what do you think that means?

The RMB, good as gold?


.
 

ttazzman

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#2
....i would say it relates to being a available investment haven when moving out of the $........ i am guessing your looking at the $ vs Gold and the $ vs RMB ...might want to look at RMB vs Gold
 

FunnyMoney

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#3
....i would say it relates to being a available investment haven when moving out of the $........ i am guessing your looking at the $ vs Gold and the $ vs RMB ...might want to look at RMB vs Gold
Your statements don't make sense. How is moving out of the dollar going to cause the RMB/Gold chart to peg?

People may move out of the dollar, but unless they split those funds into buying 50% gold and also 50% Chinese currency at the same time, then "moving out of the dollar" won't by itself help to cause those 2 (RMB and gold) to peg to each other.

And I am looking at RMB vs. Gold. Of course, what else could I be talking about? Wasn't that obvious simply from the thread title?
 

ttazzman

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#4
let me be a bit more elementary and descriptive in my speculation.......when investors decide they want to reduce their exposure to the US$ they have to choose a place to convert those us$ into something not denominated in US$ ......they have many choices such as...Commodities....foreign currency's ...... along with many other choices.......i would speculate that you will possibly find the same relationship between gold and the Yen for example ..... while i may not be correct ...you need to understand the US$ is a HUGE basket (trillions) and when a small percentage of US$ are moved out of the $ it seeks and divides itself between the most attractive non $ assets.....if it all went to GOLD the gold market would go unbelievably high and be no longer attractive to those $ leaving .....same with RMB .....so those $ flow out to many other baskets seeking the best combination of value and security creating a correlation (ie they all go up at the same time) ........ while i may not be correct the scenario i describe it is much more likely (in my opinion) than some speculation that the RMB is covertly being pegged to gold ....please take this as it is intended as informational, you can choose to believe and act on anything you want

Edit....i was posting between your #3 and #4 post ....i do agree with a lot in your #4 post just not necessarily the gold/rmb peg part....i just think $ weakness creates the appearance of a gold/RMB peg
 
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itsamess

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#5
What about Chinese exports? Who will be able to buy their then overpriced "quality products" in your scenario? The rising RMB will no be tolerated by ChiComs since it will kill their manufacturing and economy. IMHO too much world financial linkage for your scenario to go forward. Of course as you stated war is always an option to reinforce the "world" view, but historically the leaders of Chiner always devalue to prevent collapse.
 

FunnyMoney

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#6
...

....i just think $ weakness creates the appearance of a gold/RMB peg
The charts do not support that view. Dollar weakness is not correlated to the movement of the RMB-Gold peg.

The peg has been going on for over 2 years.

The value of the RMB, since it is also a paper currency, must be examined against a basket of other currencies and other commodities. This is similar to how the USD index works. But one needs to account for more than just some weighting that this one index uses. One needs to look at pay in China, cost of food around the globe that is bought in RMB, the POO, and all sorts of factors to know the true value of a paper currency.

China has just now made those "paper money calculations" MUCH easier, they have pegged their currency to gold. There is now a simple and transparent valuation metric using the only real and honest money there has ever been, besides silver.

Why do you think you don't hear about that anywhere in MSM and not even in nearly all of alternative media? MSM and our own gov't keeping the truth from us? Could that be it? Nah, the gov't and their elite handlers certainly have our best interest in mind, don't they?

.


What about Chinese exports? Who will be able to buy their then overpriced "quality products" in your scenario? ....
It is not "my scenario"!? .... .... It is fact - look at last few years monthly charts

For the exports during a slowdown, see past history:

Gold went down during the last global crisis. Gold from $1000 to $700 and silver from $20 to $11.

Gold goes down, RMB goes down. Problem solved.

.
 
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ttazzman

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#7
i dont have overlaying charting capabilities...but it would be intresting to test your statement by charting ....gold...oil....rmb...us$...yen...euro...dow jones index........all on same chart...

just as a point of reference as i stated in my 2nd post its important to note the gold/rmb relationship..... here is another post with a article showing gold breaking out against the yuan https://www.goldismoney2.com/thread...ilver-from-the-third-side-of-the-coin.234728/
 
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Ragnarok

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#8
You might actually be able to peg your currency to gold if it isn’t being printed and borrowed to infinity.

R.