View Full Version : Yuan Revaluation Speculation & Silver

Edmund Law
29th January 2010, 11:45
There is increassing 'chatter' in the trade that the Yaun might be revalued upwards against the USD etc sometime soon. Goerge Soros publicly speculated about that at Davos and pointed out it was in the best interests of the Chinese as it would alleviate their number 1 problem right now, inflation, it would also ease their problem number 2 stimulating internal demand/consumption.
Most agree that although it is hard to predict what would happen it would most likely cause commodities to rise sharply especially silver which would gain as a PM hedge versus a declining dollar but also from the increase in Chinese consumption of electrical goods.
Meanwhile the shorts will try to push silver below 15.80 or so which is the 200 day MA to encourage technical investors to sell, but I am not so sure this will cause the level of selling it would have in years gone by.