Why not buy Chinese Yuan?

[neirbod]

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Hi all,

This is my first post in a while as I've been busy with travel, kitchen remodels, and new puppies. It's a wonder I have any cash left to even think about investing :shock:

I have been hearing for some time now that the Chinese Yuan, currently pegged to the dollar, may end up floating soon. If so, it seems everyone expects it to rise agains the dollar. I hear anywhere from 15-40%.

Now, on the face of it this seems like a no brainer investment. Buy lots of Yuan, and the worst that happens is that it stays pegged to the dollar and you only lose the commission from the currency trade. Best case is that it rises substantially. This seems like a very good risk/benefit ratio. But, I never tried currency trading so I am not sure what I may be missing. Can anyone shed some light on this? Any reason not to buy Yuan? And, can anyone recommend a good institution for safe currency trades with low commission? Thanks!

Dave

 

[grandma]

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Hi Neirbod! I hope your remodeling has gone better than some of the stories we read in the magazines!! And I am glad your travels were safe - so, what kind of puppies???

Last Feb I posted a similar question to yours: http://www.tsptalk.com/mb/forum25/1260.html

The response is included here - grandma

 

[The_Technician]

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Don't know about the safety...but I have been keeping an eye on the Yuan....posted several posts concerning it....

I do feel like currency is a good investment for a time here real soon.....

Take a look at the Venezuela Bolivar........Prez Chavez is really creating a market there.......

:dude:

 

[neirbod]

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Thanks both,

Grandma, the link you gave was more about investing in Chinese companies. I would be reluctant to do that. I was curious about buying Chinese currency, the Yuan. It seems like a pretty safe investment, but I am curious to hear what others have to say about it.

Technician, yes it does look promising. I haven't read much about people snapping up Yuan, though. I keep thinking that either there are a lot of people missing something, or I am. Probably the latter.

Grandma, kitchen remodelling - takes 5 times as long as you think, and costs 3 times as much! Still, we are making progress. My puppy is a bluetic coon hound. Very cute! Also very big - he is 20 weeks old and already over 45 lb.

Dave