[SeekAndFind]

3 year RMB exchange rate to USD, no signs of slowing down



2 year gold chart, ready to take another crack at $1,000/oz

[Arguendo]

Having built up a war chest of USD 1 trillion, the Chinese need no more Dollars to shore up confidence in its own paper within the international arena Combining these two factors, the Chinese government will likely loosen the RMB peg to the Dollar at a faster pace, and we expect a minimum of 20% appreciation in RMB over the Dollar (i.e 5-6 RMB to 1 USD) in the next 12 to 18 months.

If the driving force behind this predicted rise in gold is a rise in the yuan to dollar exchange rate, why not just buy yuan futures? For one thing, it would require committing far less capital, leaving the bulk of your money to real investments (since gold is not technically an investment and doesn't provide income).