The impact of digital currency on gold

1. That's because bitcoin was hyped by others and immediately became popular, and the public saw the benefits.

2. It seems that the issue of currency is based on gold, which was the previous gold standard system

3. The digital currency should be linked to gold, and then, for example, in exchange for the US dollar, it is linked to gold. The currency fluctuates up and down with the appreciation or depreciation of gold.

4. Gold has always been a perfect hedge asset. For those who do not trust the government and the modern monetary system, gold has always been a very good investment. However, after 2009, although gold is still a safe haven asset, it is no longer the only safe haven asset. Investors began to have another choice bitcoin. What's more, bitcoin will become the gold standard of the new era

the trend of bitcoin is forming a "modern gold standard". Many people who are worried about the stability of credit currency or eager to protect their assets before the next financial crisis are keen on this kind of electronic currency

e to the convenient trading, anonymity, value preservation and other characteristics of bitcoin, many investors rush into the bitcoin market and give up the gold market. Therefore, the sharp rise of bitcoin is unfavorable to the gold market

when the expectation of unknown risks is more and more strong, the hedging property of gold will be highlighted.

5. The impact of monetary policy on gold can be divided into two aspects, because monetary policy has two directions: one is loose monetary policy, the other is tight monetary policy
first of all, loose monetary policy, such as the central bank's easing monetary policy, injects a large amount of capital into the market. When the amount of capital is large enough, there will be a certain degree of excess liquidity in the market. The result is "too much money to pursue too few procts" mentioned in western economics, and the result is rising prices, With the same amount of money and before the implementation of loose monetary policy, there are fewer goods that can be purchased, that is, the real purchasing power is declining. In order to prevent the devaluation of their currency, the residents with a large number of deposits in the bank will exchange their money into gold to maintain their value, and the demand for gold is increasing. Because of the limited reserves of gold (that is, the supply is relatively stable), the demand for gold is increasing, The price of gold will naturally rise
secondly, the impact of tight monetary policy is contrary to the above principle, so push it yourself!

6. Not all monetary policies have an impact on gold. It depends on which country's monetary policy is. At present, the US dollar is an international currency. The US monetary policy has a greater impact on the trend of gold.

7. Monetary easing will lead to loose money supply and circulation, inflation, devaluation and so on. So many assets will buy Precious Metals in order to maintain value, resist inflation, avoid currency depreciation and high-risk assets. Gold and silver is the first choice, the price of gold will rise sharply< Experts in foreign exchange investment

8. There is no necessary relationship between the two, is there< The appreciation of RMB may stimulate investment and increase investment in paper gold.
however, paper gold keeps pace with international gold futures prices and has no inevitable connection with RMB exchange rate.
let's discuss this issue when China's currency upgrades to become an international currency and Chinese people become the main force of international gold futures investment

9. The pressure of RMB appreciation in China's economy is increasing, but it is difficult to appreciate significantly: the recent external pressure on RMB not only comes from the appeal of developed countries and international organizations APEC Ministerial Conference for the marketization of exchange rate, the IMF president's statement that RMB is undervalued, and the US President Barack Obama's visit to China on November 15 is bound to put pressure on the RMB exchange rate; More importantly, with the G20 replacing the G7 as the main international meeting to discuss the financial and economic situation, more emerging market countries have recently joined the ranks of putting pressure on the RMB, including Brazil, Russia, Indonesia, Thailand, etc., believing that the weakness of the RMB this year has hit its export competitiveness. This has greatly increased the pressure on RMB appreciation. We judge that RMB appreciation will resume when China's exports recover significantly in the first quarter of next year. However, it is unlikely that there will be a substantial appreciation, because although the RMB is weak this year, it has appreciated significantly compared with other currencies in the past few years, and the efforts to achieve global economic rebalancing are much higher than those of other countries. We think RMB will appreciate slightly by 3-5% next year. IMF's trip to China may be intended to sell gold (1161.90,9.00,0.78%) to China, and the price of gold may rise: IMF president Strauss Kahn will visit China from November 16 to 17, and the market may speculate that the trip involves persuading China to buy gold. Earlier, the IMF announced that 200 tons of 403 tons of gold it plans to sell have been sold to the Central Bank of India, pushing up the international gold price. At present, China's gold reserves only account for 1.7% of the foreign exchange reserves, which is lower than the average level of other countries. The market may have higher expectations for China's purchase, thus pushing up the gold price in the near future. However, if China decides not to buy, it will have a downward impact on gold prices. Overseas economy the United States reiterated its support for a strong US dollar at the APEC Finance Ministers' meeting. However, no matter from the latest development trend of real economy or financial market, there is no condition for us to implement a strong US dollar policy in the near future. The unexpected decline of consumer confidence, the new high of fiscal deficit in 2009, the rising pressure of unemployment rate and the expansion of trade deficit indicate that the US economy will not be able to bear the strong US dollar policy in the short term. The worry about the possible harm caused by the tide of US dollar arbitrage also hinders the implementation of the strong US dollar policy. The market is now generally aware of the existence of arbitrage trading, but there may be a lack of concept on its scale and the harmfulness once the position is closed. Due to the lack of direct statistical data of financial arbitrage transactions, we can only make an indirect comparative analysis with the historical financial arbitrage transactions. Recent market trends have shown that more and more investors are speculating in the same direction, which has made the correlation between the price rise of various assets (including bonds, emerging market equity assets, crude oil and commodities) and the weakness of the US dollar more significant. At present, US dollar interest rates are at a record low level, and US dollar arbitrage trading will continue until liquidity is tightened. Historical experience tells us that such one-way speculation essentially involves drastic adjustment of asset prices and exchange rates when large-scale positions are closed, and the main risks lie in emerging markets and commodity countries. After five consecutive quarters of cumulative contraction of 5.1%, the economy of the euro zone recovered slightly in the third quarter, with a month on month growth rate of 0.4%, slightly lower than our expectation of 0.7%, and more significantly weaker than the US GDP growth rate of 0.9% in the third quarter. The GDP of euro zone in the third quarter still fell by 4.1% year-on-year, but the contraction was narrower than that of 4.8% in the second quarter. Last week, the outflow of long-term funds from money market funds remained unchanged, and global stock and bond markets returned to the inflow trend of the past 35 weeks. Net inflows of about $7.2 billion from developed countries and about $2.3 billion from emerging markets, of which nearly $600 million went to China, about twice the net outflow last week. The asset weight of long-term funds to global emerging stock markets increased significantly, from an average of 16.2% in October to 16.4% last week, the highest since 2008, indicating that investors' risk preference for emerging markets has recovered significantly.

10. RMB and gold belong to the same currency, but they have little to do with each other. The most positive impact of gold's rise and fall is the US dollar. When the US dollar rises, gold will fall, and when the US dollar falls, gold will rise. RMB will depreciate when it is over issued or over issued too fast. Compared with gold, the relationship between RMB and US dollar is bigger. The strong US dollar will cause RMB passive devaluation. Generally speaking, RMB and gold are mutually promoting
specifically, the depreciation of RMB will boost the trend of US dollar, and then depress the bulk commodities led by crude oil and gold. The sharp depreciation of RMB also weakens the trend of gold. However, e to the significant weakening of RMB, the non US currencies in the foreign exchange market fell against the US dollar. As the second largest economy in the world, China's monetary easing will lead to stronger inflation expectations, which will boost the trend of the gold market
the devaluation of RMB has no direct impact on the price of gold. The devaluation of RMB means more money, and gold is still the original gold, so the price of gold will rise with the devaluation of RMB
at the same time, for any combination of currencies, if gold is suitable as a hedging tool for one currency, it is not suitable for another currency. For example, the devaluation of gold against the currency used by your country is not correct from a macro perspective.