True that China is buying gold (and I believe they are also switching from USD to EUR and other hard currency). But particular for gold, US Fed can somehow control the price since they have the physical assets in huge stock. By loading and unloading, they can monopolize the price to their vested interest. But agree that holding gold is protecting from inflation.
As for non ferrous metal, it depends whether China buying is just for stock purpose or intention to hedge against inflation. If for stocking, the cheaper price is the better and making the price will be going nowhere and even tend to sluggish. As earlier, China is also having problem with their manufacturers. What I believe, China should not only focus the use of commodities for building infrastructures but more should use for manufacturing products, enterprise and create jobs. But again who will consume them? So, bottom line. If market is shrinking and buying appetite is low, the price will be going even lower for all product and as well as the resources. That's why the concern is how to boost the spending in all over the world to create the real economyc (recovery & grow) rather than stimulus make up... On Mon, Sep 14, 2009 at 9:28 AM, s|nnerman <tv.k...@gmail.com> wrote: > > > Thank you for your inputs sir,… > > I am sure you are just being humble.. > > Currently China’s main problem is the devaluating USD. > > There’s no country in the world that would just sit quietly and see their > money (treasury/reserve) diminishing. > > > > We have agreed that US is facing serious inflationary issue. And based on > my discussion with Miss Elaine is that , do we see India, China and > Indonesian markets able to push the commodity prices up? > > I am convinced that the energy and non-ferrous metal prices are overvalued. > > > However, with the devaluating in USD, I see the possibilities that China > will diverse her reserve in various forms, including precious metals, > non-ferrous metals, and energy. If that happens, will China able to push the > prices north?! > > > > > > Regards > > s|n > > > > > > > > *From:* obrolan-bandar@yahoogroups.com [mailto: > obrolan-ban...@yahoogroups.com] *On Behalf Of *YUTA > *Sent:* Sunday, September 13, 2009 11:07 PM > *To:* obrolan-bandar@yahoogroups.com > *Subject:* Re: [ob] To: Pak Hendra Bujang, Embah, Pengamat Market and > others on US Inflation > > > > > > Hi > > > I am not expert on fundamental things but just a guy who keen to learn > something on what happen to the economic. Since you put my name, I am > trying to share some of view. > > Uhm so difficult questions. Perhaps we need to agree on future, is > this inflationary is happening in US or contrary their currency is > devaluating? I guess, both is ongoing. Inflation is the future threat > of what US peoples is most worrying about. While it is ongoing where > US dollar is devaluating to other currencies. There should be a trade > off which we don't know what's gonna happen. > > Look at China, they have also problems with over capacity which will > lead to deflation but in the other hand they are very sensitive on > commodities fluctuation which will trigger to inflation. Confuse, > right? Then it does make sense where China is also curbing both > (Commodities inflation and US dollar deflation) by diversing their > reserve, at least for my perspective of thinking. > > I believe what peoples wiat is how US government will end the stimulus > and their method take out the liquidity from the market. Once they > increase the interest rate, stock and market will negatively react. > And once it happen, as you aware, the US dollar will increase their > value which other currency should follow (to increase interest rate) > as well. You can imagine if accross the universe is raising their > interest rate from one to another place ..... > > That's the comment from newbie too...Doesn't answer your question. Fool > me... > > To Seniors, please correct if something wrong... > > 2009/9/13 tV.kun0 <tv.k...@gmail.com <tv.kun0%40gmail.com>>: > > Dear Pak Hendra Bujang, Embah, Pak Pengamat Market, Pak Yuta, Elaine and > other macro economic experts. > > > > Please allow newbie to ask a few questions related to macro economic > issue. > > > > Recently I read some news regarding the threat of the US inflation. Below > is some copy and paste from the articles. > > > > "Buffett is sounding the warning that America's enormous and mushrooming > public debt presents an enormous inflation risk. He points out that private > savings and foreign loans won't adequately cover our huge borrowing." > > > > "All that spending originates as borrowing, and there's no way it'll ever > be repaid. It'll be inflated away by the Federal Reserve's monopoly on money > creation. That will erode the value of the money in your pocket, in your > bank account, and, yes, in your stock portfolio, too." > > > > > > My questions are: > > 1. How severe will the US inflation impact on our country's (RI) economy > and stock exchange? > > 2. Will it drive the value of oil south? If so, could you please > elaborate?! > > 3. Many believe that if the US inflation do really happen, gold price > shall soars. Will the non-ferrous metal prices climb as well? > > 4. Are there any stock that will rise along with inflation? If so, what > sector(s) would it be? > > > > Thanking you very much in advance for your time to answer. > > > > s|n > > > > Sent from my BlackBerry® > > powered by Sinyal Kuat INDOSAT > > > > ------------------------------------ > > > > + + > > + + + + + > > Mohon saat meREPLY posting, text dari posting lama dihapus > > kecuali diperlukan agar CONTEXTnya jelas. > > + + + + + > > + +Yahoo! Groups Links > > > > > > > > > > > > >
