Hello Everyon I want to play the China currency manipulation. It is my thesis that China will be called a currency manipulator for several reasons. If they do become labelled a currency manipulator I believe that gold will have very significant upside. My question is how much if any do you think gold will rally by if they end up calling China a currency manipulator.
What are the consequences of being called a currency manipulator? And why do you think Gold will rally?
No, things like that don't just happen purely because a random moron says something off-handedly and pisses China off, that's the kind of thing schools teach and it is wrong, markets are not influenced by 'lack of confidence' either. Gold prices go up because of inflation or hard times, when the stock market crashed gold prices skyrocketed. The same thing is likely to happen again. I recommend looking at what happens in Greece and studying the gold prices, it may well be that Greece might default regardless of the bailouts and that will probably trigger a surge in the price of Gold and also Silver because everyone there will be wanting to protect their wealth, even then if the bailouts come in then gold will probably go up because of the inflation it would cause in Greece.