New York, NY (PRWEB) - If China is to back its currency, the yuan, it won't useexchange-traded funds (ETFs) to do it, but rather gold bullion,according to Michael Lombardi, lead contributor to ProfitConfidential. Lombardi calculates that the demise of the gold bullion market isgreatly exaggerated, as the demand for physical gold by China andother large investors will continue for some time. "China will continue to purchase gold bullion to back its yuan,"says Lombardi. "Is the bull market in gold over? Not a chance." In the article, Is the Bull Market in Gold Over?, Lombardi reportsthat the People's Bank of China will, within the next year or two,establish the China International Payment System to settlecross-border trade and investments in yuan for countries and banksworldwide.
Today, the contracts for commodities like gold bullion that tradeon the LME are settled in U.S. dollars, the euro, the U.K.'ssterling, or the Japanese yen. Lombardi believes that China wantsthe yuan added to the list of currencies it settles in, removingthe sterling completely. "These actions are irrefutable proof of China's intention to makethe yuan a reserve currency on par with the U.S.
dollar and theeuro," says Lombardi. "China's insatiable demand for gold bullionwill continue to rise, as China has only a fraction of the goldbullion to back its currency compared to what the U.S. and eurozonehave." Lombardi investigated the notion that the demand for gold bullionhas fallen. "That statement is false," says Lombardi. "Demand forgold ETFs is clearly falling; however, the demand for actualphysical gold coins and gold bullion has increased significantly" Lombardi believes that serious gold bullion investors may have beenselling their ETFs to purchase physical gold coins and goldbullion.
Profit Confidential, which has been published for over a decadenow, has been widely recognized as predicting five major economicevents over the past 10 years. In 2002, Profit Confidential startedadvising its readers to buy gold-related investments when goldtraded under $300 an ounce. In 2006, it "begged" its readers to getout of the housing market... before it plunged. Profit Confidential was among the first (back in late 2006) topredict that the U.S.
economy would be in a recession by late 2007.The daily e-letter correctly predicted the crash in the stockmarket of 2008 and early 2009. And Profit Confidential turnedbullish on stocks in March of 2009 and rode the bear market rallyfrom a Dow Jones Industrial Average of 6,440 on March 9, 2009, to12,876 on May 2, 2011, a gain of 99%. To see the full article visit . Profit Confidential is Lombardi Publishing Corporation's free dailyinvestment e-letter.
Written by financial gurus with over 100 yearsof combined investing experience, Profit Confidential analyzes andcomments on the actions of the stock market, precious metals,interest rates, real estate, and the economy. Lombardi PublishingCorporation, founded in 1986, now with over one million customersin 141 countries, is one of the largest consumer informationpublishers in the world. For more on Lombardi, and to get thepopular Profit Confidential e-letter sent to you daily, visit . Michael Lombardi, MBA, the lead Profit Confidential editorialcontributor, has just released his most recent update of CriticalWarning Number Six, a breakthrough video with Lombardi's currentpredictions for the U.S.
economy, stock market, U.S. dollar, euro,interest rates and inflation. To see the video, visit SUBSCRIBE to Mineweb.com's free daily newsletter now. I am a professional writer from Digital Gear & Camera Bags, which contains a great deal of information about canon 20d body , r factor insulation, welcome to visit!
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