Monday, February 7, 2011

Chinese One Step Ahead...Again

 This weeks gold price gaped up on the fourth trading day due to speculation that the Chinese Fed and Central bank plan to stockpile rare-earth metals.

Such a strategy will work to hedge against volatile global rare-earth metal prices. This strategy will not only limit Chinese exposure in price movements, but will certainly add to what already is a dominant 90% control of total global rare-earth supply.

If this isn't a bearish signal for currencies and equities, I don't know what is.

Is this signal strong enough to hop on the gold bandwagon, again?

No comments:

Post a Comment