1. THE YUAN

We awake this morning to a new world.  The Yuan has gone bid.  Last week, in fact over the weekend, the Chinese quietly informed the U.S. and then the world that they would decouple the Yuan from its long-held US dollar moorings and allow it to trade within a “band.”  As I write the Yuan has appreciated .4%.  This may of course be a one–off. China has been under pressure from the U.S. Congress and the Europeans to meet an end of June deadline to decouple the Yuan…..

2. GOLD OR SILVER

At this point gold has simply run away from silver.  The gold to silver ratio is almost completely out of whack at 65.4 times.  This is a sign that gold is now viewed as safe-store asset. In Greece gold is trading at U.S. $1700.  We keep thinking that gold needs a correction.  The following chart really doesn’t look much like a parabolic move in gold, does it?  Gold will correct at some point because no “tree grows to the sky.”…..

….read “We awake this morning to a new world” + Gold vs Silver HERE