world currency

Article Index

The Golden Yuan Is Coming - Here's How to Play It

By , Money Morning -

The U.S. dollar has been the world's de facto reserve currency for almost 90 years.

But this financial dominance may be nearing its end.

In recent years, China's been floating the idea the yuan should take on the dollar's role as the world's reserve currency.

In fact, the Chinese have already negotiated numerous bilateral trade deals that completely bypass it.

And they've even called for efforts to "de-Americanize" the global economy.

Whatever happens, China's economic rise foreshadows increased influence.

It's a trend that not only has serious implications, but also great profit opportunities, if you know what to expect...

Will Gold be Paulson's Next "Greatest Trade Ever"?

By , Money Morning -


When famed hedge-fund manager John Paulson speaks, people listen.

And it's no wonder.

Paulson made his way into the financial history books thanks to what many now call the "greatest trade ever".

Paulson & Co. shorted the subprime mortgage market before the collapse banking a $15 billion gain.

So when Paulson went big again by buying gold in 2009 and 2010, investors took notice.

At the time he said, "As an investor, I became very concerned about having my assets denominated in U.S. dollars," Paulson told his audience. "So I looked for another currency in which to denominate my assets in. I feel that gold is the best currency."

In fact, Paulson's holdings in the SPDR Gold Trust (NYSE: GLD) make his firm the biggest stakeholder in this ETF, with a position currently valued at $2.9 billion.

So that begs the question....

Is Paulson still a gold bull?

In a recent letter to investors he wrote, "By the time inflation becomes evident, gold will probably have moved, which implies that now is the time to build a position in gold."

And he's not alone.

Recent filings showed that another legendary hedge-fund investor, George Soros, has nearly doubled his stake in GLD to 85,450 shares.

But "Bond King" Bill Gross's latest words and actions may well be the most significant of all.

To continue reading, please click here....