Joined: Sep 16, 2004 Posts: 4403 Location: Southwest WI
Posted: Tue Nov 16, 2004 11:58 pm Post subject: Investing in ... Yuan?
Or whatever its name is... I was watching Frontline tonight (about Wal-mart&China) and an economist on there was saying the Chinese currency is undervalued by something like 40%. Now, If I do the math, that means that a person could come out alright if you were invested in Yuan. I know China has there own problems, but they don't carry a debt burden like the US.
How would one go about doing this...?
Is it worthwhile?
I say this, because I here a lot of talk about buying Euros.
In the past month, Australia's currency has gained 5.7 percent against the U.S. dollar, the euro has risen 4 percent and the yen has appreciated 3.7 percent. The Australian dollar is up 2.9 percent so far this year.
On the other hand, had you bought gold in August, you'd be $40 USD up on the ounce. Silver has done even better unit to unit.
What I will say is this, AUD has moved in a similar rate to gold. Meaning, the August price of gold was in the range of $560 to $570 AUD on a $400 USD oz. Today, with gold at $440 USD an oz, it's still bumps about in the range of $560 to $570 AUD. No real difference. I'm actually waiting for the AUD to fall so I can see gains in my gold and even better gains in my silver. I may be waiting a few months. That's ok, it allows me a longer window period to buy more.
Australia is also in an economic boom with Aussie stockmarkets breaking records, so the AUD will continue to grow. Not convinced, google search on Australian dollar and read the current news.
Joined: Sep 16, 2004 Posts: 4403 Location: Southwest WI
Posted: Wed Nov 17, 2004 10:05 am Post subject:
I was thinking about buying gold back when it was 370/ounce...
It seems all nonamerican money is doing well. I just thought when the Chinese currency (which is current match to us dollar) gets revalued (thats what seems to be likely) then China currnecy is going to increase in value.
Joined: Aug 10, 2004 Posts: 1104 Location: San Diego, CA, USA
Posted: Wed Nov 17, 2004 10:20 am Post subject:
frankthetank wrote:
I was thinking about buying gold back when it was 370/ounce...
It seems all nonamerican money is doing well. I just thought when the Chinese currency (which is current match to us dollar) gets revalued (thats what seems to be likely) then China currnecy is going to increase in value.
Speculating on the chinese currency is a huge risk. There are accounts that have been created to do so, e.g. take a look at the reference Special Chinese Renminbi Accounts that is located on the Everbank page. It points out that you can lose everything. The Chinese currency is, in a lot of ways, not a real currency. Not like the euro or the dollar. Buyer and speculator beware. The chinese may revalue the currency and dictate that all currency held above certain amounts will not be converted to dollars. In other words, they will kill the speculators.
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