The first obvious implication of this tradeoff is the valve itself, “Gold in China.” Now that we have confirmation they intend to ease their way out, you might want to double up the short CNY leg, as it actually only has half the volatility as the gold/usd leg, and so to be fair, you don’t j…
The first obvious implication of this tradeoff is the valve itself, “Gold in China.” Now that we have confirmation they intend to ease their way out, you might want to double up the short CNY leg, as it actually only has half the volatility as the gold/usd leg, and so to be fair, you don’t just want gold denominated in CNY, you actually probably want gold AND dollars."
How does one buy "gold in China"?
"Gold in China
The first obvious implication of this tradeoff is the valve itself, “Gold in China.” Now that we have confirmation they intend to ease their way out, you might want to double up the short CNY leg, as it actually only has half the volatility as the gold/usd leg, and so to be fair, you don’t just want gold denominated in CNY, you actually probably want gold AND dollars."