I'm not sure if I'd bother, unless Yennus is offering good exchnage rates the spread on currencies generally sucks, the reason i buy gold is as a hedge against the aus dropping.....
Yeah, I guess 'if' the Yuan does become the reserve currency it will probably have some sort of gold backing, so gold is a win, win.
The difference between the US and China is that the US tells the world they're printing while China does it in secret. Heck nobody even really knows how much cash China has. Anyway I don't see any point in owning Yuan because AUD is already a proxy for Yuan investing so our AUD is already 'good enough' if you want Yuan exposure. Also if you invest in Yuan the interest rates are very low compared to AUD so you may be holding a physical currency for 2 years while it sees no gains.
Just been doing a google search on the capital gains tax implications of foreign currency from what I have found so far foreign currency is concidered an asset so capital gains tax would need to be paid on any profit made from it? Is this correct any thoughts?
I think I read somewhere says that because China pegging Yuan to the US dollar in the past 30 years so as US dollar lost 98% value to the gold.....Yuan lost 99%.
The yuan will strengthen... here are several reasons: 1.they will get rid of the dollars and most likely they will invest in more yuans (pushing up the price) 2.the yuan is indeed undervalued, artificially: because they kept it low, as it was good for the exports to do so 3.China's economy is slowing down, so they're putting more energy into stimulating internal consumption (naturally this will increase the yuan's strength) 4.the overall Chinese life standards have increased and are still on the increase... here I see another reason for a stronger currency
