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What would happen to Gold & Silver IF:

The IMF latter this year, were to add the Chinese Currency
to the Worlds Reserve Currency? would this cause the US Dollar
to tumble.

Comments

  • rawteam1rawteam1 Posts: 2,472 ✭✭✭


    << <i>The IMF latter this year, were to add the Chinese Currency
    to the Worlds Reserve Currency? would this cause the US Dollar
    to tumble. >>


    Lol, What kind of psychotic question is this???...
    You speculating on g&s or usd... And unfortunately I perceive you to think if the dollar(index) falls then gold will rise...
    Or who knows what the heck you personally define the US Dollar as/is...
    Ultimately it's all meaningless...
    keceph `anah
  • mariner67mariner67 Posts: 2,746 ✭✭✭
    Gold & silver will continue on a long term downward trend for a very very long time.
    Secular bear market...often lasts decades...just like last time.
    Don't think this time it is different!
    Successful trades/buys/sells with gdavis70, adriana, wondercoin, Weiss, nibanny, IrishMike, commoncents05, pf70collector, kyleknap, barefootjuan, coindeuce, WhiteTornado, Nefprollc, ajw, JamesM, PCcoins, slinc, coindudeonebay,beernuts, and many more
  • cohodkcohodk Posts: 18,554 ✭✭✭✭✭


    << <i>The IMF latter this year, were to add the Chinese Currency
    to the Worlds Reserve Currency? would this cause the US Dollar
    to tumble. >>



    First you have to understand what you are asking. When you understand, you will have the ability to answer your own question.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear



  • << <i>

    << <i>The IMF latter this year, were to add the Chinese Currency
    to the Worlds Reserve Currency? would this cause the US Dollar
    to tumble. >>



    First you have to understand what you are asking. When you understand, you will have the ability to answer your own question. >>



    Well how about a little help!
  • AUandAGAUandAG Posts: 24,515 ✭✭✭✭✭
    The Chinese banking system is the pits.....yes, there is a move to add the Yuan to world currencies and it will
    probably happen. Russia will like it as will the countries in the Middle east (not Saudi Arabia, not Kuwait).
    If allowed they will not participate to any extent in replacing the USD as they will be limited to a few percent
    of world business.
    Lots of info on the Web regarding this.
    It will not affect anything and gold and silver will continue to fall.

    bob
    Registry: CC lowballs (boblindstrom), bobinvegas1989@yahoo.com
  • cohodkcohodk Posts: 18,554 ✭✭✭✭✭
    There is really too much to consider about this subject but first I would look at the present composition of the currency basket and then figure the addition of the Yuan. The Yuan addition would not only take away some influence from the US dollar, but also a little from the other currencies in the basket. In the end, the relative influence of the US dollar vs other currencies would remain relatively constant.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭


    << <i>Gold & silver will continue on a long term downward trend for a very very long time.
    Secular bear market...often lasts decades...just like last time.
    Don't think this time it is different! >>




    So your cycle projection is that even though the 1980-2000 20 year PM bear was only followed by a 10 year rise, that everything is reset for another 20 years down? Doesn't seem logical that a PM cycle is 20 yrs down - 10 up - 20 down - 10 up, etc.

    If it's "just like last time," where silver and commodities put in a 18-20 year rise (depending on when you pick the start day in the 1960's)....then a measly 10 year rise from 2001-2011 seems very short. If that is the case, then this time already is different. How do you know this is a long term PM secular bear market? One could say silver rallied from 1932-1980 based on all time low US silver prices of 25c/oz in the early 1930's. Or another view would be a rally from 1945-1980 as silver prices rose steadily during and after WW2. Worse case you might come up with the early 1950's to 1980 as a silver bull or even 1958 or 1962-1980. Don't try to assign a bull market to gold from 1970-1980 as it was fixed in price for most of 1962-1968. So anywhere from a 20-60 year up market cycle seems reasonable. If you can accurately choose what exactly silver (or gold) did "last time" around, then "next time" should be a piece of cake.
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • BaleyBaley Posts: 22,658 ✭✭✭✭✭
    Ya might get a spike in PM prices as there's a scramble for physical. Then Gold and Silver would make the front pages of the financial papers, and CNBC would send a reporter to live coverage at a coin show.

    that would be the peak, get out then image

    Liberty: Parent of Science & Industry

  • rawteam1rawteam1 Posts: 2,472 ✭✭✭


    << <i>Ya might get a spike in PM prices as there's a scramble for physical. Then Gold and Silver would make the front pages of the financial papers, and CNBC would send a reporter to live coverage at a coin show.

    that would be the peak, get out then image >>


    Deja vu all over again...lol...
    keceph `anah
  • jmski52jmski52 Posts: 22,307 ✭✭✭✭✭
    Then Gold and Silver would make the front pages of the financial papers, and CNBC would send a reporter to live coverage at a coin show.

    that would be the peak, get out then


    I remember when Walter Perschke appeared on Wall Street Week with Louis Rukeyser after buying his Brasher Doubloon in 1979. It wasn't quite the peak, but it was getting closer to the peak at that time.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • jmski52jmski52 Posts: 22,307 ✭✭✭✭✭
    So your cycle projection is that even though the 1980-2000 20 year PM bear was only followed by a 10 year rise, that everything is reset for another 20 years down? Doesn't seem logical that a PM cycle is 20 yrs down - 10 up - 20 down - 10 up, etc.

    If it's "just like last time," where silver and commodities put in a 18-20 year rise (depending on when you pick the start day in the 1960's)....then a measly 10 year rise from 2001-2011 seems very short. If that is the case, then this time already is different.


    Not only that, but there are market dynamics in play now that didn't even exist in 1960 thru 1985. It's not to say that market manipulation didn't exist before (Joe Kennedy was one of the biggest stock market "dark pool" manipulators in the Roaring '20s), but the tools used to manipulate markets, and the markets themselves are now way beyond what anyone could imagine back then.

    So what happens if China's yuan gets added to the basket of currencies used as a world reserve currency? See what cohodk said. It's a nominal change only as long as fiat remains viable, and fiat viability is only a numbers game based on debt service (interest payments). Inevitably, fiat collapses. It always does.

    Market cycle projections will only matter until real world supply runs short of real world demand, as in that socialist paradise - Venezuela today.

    Not to worry, it can't happen here.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • TwoSides2aCoinTwoSides2aCoin Posts: 43,796 ✭✭✭✭✭
    Chinese food would go up in this country. And it would still go down pretty good, too . image
  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    What if after having their currency added to the IMF's SDR basket that they readjust their gold inventory up 1,000-2,000 tonnes at the same time? Any change then, or just same old same old?

    What are the odds that China reported "relatively" accurately this past month at 1,658 tonnes? Why would they?
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • OPAOPA Posts: 17,104 ✭✭✭✭✭


    << <i>What if after having their currency added to the IMF's SDR basket that they readjust their gold inventory up 1,000-2,000 tonnes at the same time? Any change then, or just same old same old?

    What are the odds that China reported "relatively" accurately this past month at 1,658 tonnes? Why would they? >>



    Sounds like a dilemma for our in house conspiracy advocates to "chew on."image
    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
  • derrybderryb Posts: 36,118 ✭✭✭✭✭
    For any currency to affect the dollar index it has to be added to the six currencies that currently make up the dollar index. This is not controlled by the IMF.

    IMF SDR status gives other central banks the green light to add RMB to their reserves and encourage outside investors to pour money into Chinese stocks and bonds. Many believe that China's build up of gold reserves was done to strengthen their odds of SDR inclusion.

    The decline from democracy to tyranny is both a natural and inevitable one.

  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭


    << <i>

    << <i>What if after having their currency added to the IMF's SDR basket that they readjust their gold inventory up 1,000-2,000 tonnes at the same time? Any change then, or just same old same old?

    What are the odds that China reported "relatively" accurately this past month at 1,658 tonnes? Why would they? >>



    Sounds like a dilemma for our in house conspiracy advocates to "chew on."image >>




    There goes that "C" word again. Only the fiat bugs still seem to utilize it. The Chinese would just be exercising "good business practices" by not showing their entire hand. They've been doing this with their official stated gold inventory since 2003. It's an apparent steady business practice....not a "C" word.

    I agree with derryb that the USDX is sort of irrelevant to China...especially since they're currently pegged to the USDollar. It's the SDR that matters ....not the USDX. The world is heading away from a USDX based trading/currency system and towards a more functionable IMF SDR. The Chinese will probably unpeg when that time comes.
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • Well it looks like most of you think PM prices are dead for right now.

    The reason I started this thread was because me and a friend purchased

    a financial report together. In the report they predicted that the IMF

    would announce sometime in late October 2015 that the Chinese

    currency would be added to the reserve currency. They said when

    this happens, it will be a shock to the worlds currency markets. They

    went on to say this would be a very big story on financial news everywhere for

    days, if not weeks. This report says everyone in America would be effected

    when tens of billions, even hundreds of billions of US dollars are sold in the markets

    in order to buy the Chinese currency. They do not predict a US currency

    collapse but they say US currency will take a hit. They also go on to say

    US currency will slowly continue to drop for at least 5 years.

    They predict most US Stocks will suffer, but some will prosper to.

    Commodities will do well, especially PM`s. Your home value will rise.

    Chinese Stocks will surge. They say the time to prepare is now.

    They also stressed that when buying PM`s buy Physical.

    I know nothing about the currency markets, or how they can

    effect the US Dollar and PM. That's why I am

    reaching out to you guys.
  • rawteam1rawteam1 Posts: 2,472 ✭✭✭
    Well you are going to have to start paying here...
    Might as well pay for some real info and insight instead of regurgitated crap you could have got for free...
    I will answer only for a fee...
    keceph `anah


  • << <i>Well you are going to have to start paying here...
    Might as well pay for some real info and insight instead of regurgitated crap you could have got for free...
    I will answer only for a fee... >>



    Thanks A Lot! image
  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    I'll keep answering w/o a fee, as will derryb and others. No one has all the answers. There's no sure thing. The fiat bugs can only see "L@@K" when thinking about the USDX. The IMF SDR change could me dragged out for many months or years. The US basically "owns" the IMF so who knows?

    The USD dropped for 7 years from 2001-2008. And now it's risen for exactly 7 years since 2008. No idea what that means other than it's symmetric. No real decline since the much stronger 4 year rally began.
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • cohodkcohodk Posts: 18,554 ✭✭✭✭✭
    How much did you pay for this "report"?

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭


    << <i>How much did you pay for this "report"? >>



    Why, is "good" information only available at a cost? The information from the BLS, BEA, OCC, FED, and BIS is all free too. Does paying more for information make it that much more accurate?
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • rawteam1rawteam1 Posts: 2,472 ✭✭✭
    On a serious note, I have learned a tremendous amount from you roadrunner and I greatly appreciate it, thank you...
    keceph `anah
  • cohodkcohodk Posts: 18,554 ✭✭✭✭✭


    << <i>

    << <i>How much did you pay for this "report"? >>



    Why, is "good" information only available at a cost? The information from the BLS, BEA, OCC, FED, and BIS is all free too. Does paying more for information make it that much more accurate? >>



    Or make it less accurate? That's what I want to know? Was there also a coupon attached to this report?
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • s4nys4ny Posts: 1,562 ✭✭✭
    To answer your question, I think there would be very little effect
    on gold and silver.

    Gold and silver are in downtrends which could end at any time. Often,
    trends continue further than we expect. We are probably seeing that in
    precious metals (down) and stocks (up).

    I tell my children "don't accept candy from strangers" and
    that also applies to investment advice.
  • derrybderryb Posts: 36,118 ✭✭✭✭✭
    What would happen to gold and silver IF the euro strengthened? image

    The decline from democracy to tyranny is both a natural and inevitable one.

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