China and Australia have been investing in foreign based commodities with US$
This is one way to unload the amount US$ held in reserves for both countries.
Much of this is old news, and a direct result from the formation of the B.R.I.C.S. that have recently come together.
With China now being the number one trade partner for Brazil after displacing the US from that role back in 2009, technology investments seem to be next on the list after heavy investment in commodities.
With $10 billion going to Brazillian soybeans in March, $6 billion to Iran oilfields, another $9 billion to Brazil again in July taking the Chinese direct investment to a total of $12.67 billion so far.
South Africa has also been a recpient of a portion of the $US held by China in the amount of $90 million for four different projects back in Jan. of 2008.
Australia also threw some $US to Africa totaling $20 billion as of August 31, 2011.
South Korea seems to be jumping on the bandwagon as well using $39 billion to expand key ports.
All of this can be passed on as business as usual, since the $US is still the reserve currency of the world.
However, all of these deals are not to be paid back in $US, rather commoddities such as soy beans and oil. Just something we felt was not being discussed as much as it should by the infamous “talking heads” a good portion of investors get information from.
Metals have been trading in a range this week with gold still above $1,800 and silver keeping it’s head above $41. Platinum around $1,820 and palladium in the $720 range.