http://feedproxy.google.com/~r/fsn/~5/343vQuPzAMk/fsn2011-0504-1.mp3 In the event of a bust of the Chinese property and asset market what would that do to prescious metal mining stocks? Would that cause a sell off by the working class of their wealth contained in asian silver metal stores to pay for their daily needs because of unemployment? The future is hardly a sure thing, including the short term future for the metals. Obviously base metals like copper, aluminium, iron etc will take a MAJOR plunge, will Aussie mining stocks survive with any worth while resell value? Its too complicated for me, what do you guys think after listening to the interview above.
What about the effect on the Aussie House Market? And what will happen when they let the RMB appreciate? They will suddenly become even more financially powerful than they are now?
It would crush the price of precious metals, bringing gold down about 10-15%, and silver down about 40-60%, best case scenario. Worst case scenario and China started to seriously unwind, gold would come down around 50-60% and silver down 90%+.
If you are worried about this, during this year i suggest you look into and study hedging your assets and possibly purchasing PUT options on asset classes that suit you.
Tsk, tsk, so true, so true . . . in RMB! Benja-other-one-would-ya! Aussie and US purchasing power would reduce, PM prices in those currencies would appreciate and the cost of everything would skyrocket out of sight as 1.3 billion chinese suddenly find they can buy up the whole world for the paper promises printed for nothing from their central bank.
