World Currency Profit Gameplan

Recently, I told you I was working on a special Currency Report, with profit recommendations for a large basket of world currencies.

There’s so much information here, I’ve decided to break it into a two-part series.

The simplest way to do this is to start with the Big Five. These major currencies serve as the “drivers” for the minor ones. In my upcoming Part 2, I’ll tell you which of the minor currencies (like the Aussie dollar or the Swiss franc) are tied to which of the major ones, how that impacts their direction, and how you can profit.

Right now, we’ll start with profit recommendations for the 5 major currencies that drive all the rest.

THE BIG FIVE – CURRENCY GAMEPLAN, PHASE 1

The five currencies fueling the world economy right now are GOLD-USD-EURO-YUAN-YEN, in that order. (Gold, as I’ve written many times before, is a currency, not a commodity.) Everyone else is a minor player.

Keep in mind that no currency is an island unto itself. They do not operate in isolation. In a very long view, central banks will eventually destroy the value of paper money and gold will be the only currency left standing. Until then, some of these currencies will go up and others will go down, in an interconnected domino effect. (More on that in Part 2.)

Of these five currencies, gold and the dollar are going up, and are likely to continue doing so for some time. The euro, the yen and the yuan are going down.

Here’s how to profit from each one.

As always, puts are my preferred trade as a less risky way to play the short side.