So is China hedging their treasuries?

Discussion in 'Trading' started by athlonmank8, Oct 7, 2009.

  1. Is that the consensus for this gold scenario? China hedging their treasuries against the USD?

    There's no inflation to hedge yet.....so it can't just be retail buying as an inflation hedge (although that's about ready to ramp too IMO.)

    Trying to get a handle on what's going on here, because this is going to be an issue for the next few months it looks like.

    And PLEASE i don't need opinions or BS articles from no-name sources. This isn't for trading. I'm curious if it's macro.
     
  2. I hadn't looked at gold in a couple days. Wow.

    If China is hedging, presumably they'd cut back on treasuries. Since it requires 2X the capital to put on a hedge (one buy, one sell).

    Either way, I don't know.
     
  3. Hello,

    I read the comment.Well that is so nice.I hope that we will share more latest updates at the community.Thank you for sharing the comment..
     
  4. that chinese sovereign fund has some of the smartest pple in the world working for them now, many of whom were trained here in the us of a.
     
  5. Uhm, why would you say that?
     
  6. I have been long gold and loving it. The price of a car in gold has been constant since 1920s. Why not have constant purchasing power after last year?
     
  7. All it takes is one look at a gold chart to realize that gold's purchasing power is far from constant. Could you buy a car with the same amount of gold now as you could 9 years ago?

    Never being worth 0 is not a compelling argument for owning something

    5yr
     
  8. You could buy more than one car if you loaded up during the last great bear market (1970s)

    Those who bought gold in the 1970s did not fare so well.
     
  9. History of Porsche 911 Prices in Gold

    1965: 5275usd, 151 ounces of gold.
    1966: 5525usd, 151 ounces of gold.
    1978: 17950, 80 ounces of gold.
    1979: 19500, 40 ounces of gold.
    1980: 26800, 45 ounces of gold.
    1981: 28365, 70 ounces of gold.
    1982: 28950, 63 ounces of gold.
    1983: 29950, 78.5 ounces of gold.
    1984: 31950, 105 ounces of gold.
    1985: 31950, 97 ounces of gold.
    1986: 33975, 87 ounces of gold.
    1987: 40425, 83 ounces of gold.
    1988: 45895, 112 ounces of gold.
    1989: 51205, 128 ounces of gold.
    1990: 59000, 153 ounces of gold.
    1991: 61915, 177 ounces of gold.
    1992: 53900, 161 ounces of gold.
    1993: 54800, 137 ounces of gold.
    1994: 79050, 206 ounces of gold.
    1995: 61100, 157 ounces of gold.
    1996: 63750, 172 ounces of gold.
    1997: 63750, 220 ounces of gold.
    1998: 63750, 222 ounces of gold.
    1999: 65030, 224 ounces of gold.
    2000: 65590, 241 ounces of gold.
    2001: 66500, 241 ounces of gold.
    2002: 67900, 198 ounces of gold.
    2003: 68600, 164 ounces of gold.
    2004: 68600, 157 ounces of gold.
    2005: 69300, 135 ounces of gold.
    2006: 71300, 113 ounces of gold.
    2007: 72400, 87 ounces of gold.
    2008: 73500, 85 ounces of gold.
    2009: 76300, 76 ounces of gold

    https://www.kitcomm.com/showthread.php?t=49170
     
  10. Well, judging from the 10y auction, these pesky Chinese might have another ~$10bn clip of treasuries to hedge.
     
    #10     Oct 7, 2009