"Big trouble in big over-leveraged China..."
Posted on 06/26/2015 7:23:06 AM PDT by ryan71
On June 25, a representative from the Shanghai Gold Exchange announced that they are planning on establishing a new physical gold price mechanism by the end of the year that will compete with London and the U.S. Comex. Expected to be denominated in Yuan, this new gold price platform comes less than 10 days after China became the first Asian country invited to be a part of the London gold fix, and unlike the U.S. Comex, will deal in direct physical gold sales rather than in paper futures and derivative contracts.
When the Shanghai Gold Exchange (SGE) opened in 2014, it set out to usurp the West's control over gold and their pricing of gold through the paper markets. And in less than a year, the SGE has created the world's largest gold fund, and is now ready to take over pricing and price discovery for the monetary metal. In fact, sources claim that right now premiums on large sales of gold bullion are ranging as high as $600 over the current paper spot price.
(Excerpt) Read more at examiner.com ...
explains why they have been buying up tons of it
Provides an excellent opportunity for a little arbitrage.
This looks serious. The Chinese seem to want the price of gold to be the price of gold. What a novel idea. Right now the price of gold seems to be whatever our masters want it to be.
Somewhere in this news is a buying opportunity. I can’t think of a recent precedent for a new pricing standard entering the market.
I have found this website to be a very useful source of information on the economy, gold, and silver.
http://goldismoney.info/forums/
Stock market is in a bubble.
Bond market is in a worse bubble.
Real Estate prices are relatively high.
Gold has been depressed for years.
Gold miners are not making any $ because the price of gold is equal to or below their price of production and replacement. Some are trading at below cash.
It’s a great opportunity for value investors with patience and ba**s, who can truly invest for the long term with $ they know they won’t need for the next 5 years.
Smart move.............for them.....................
The Chinese smell the blood in the water. They’re making their move to upset the apple cart.
Christmas will be very interesting this year.
I would like to see the end of manipulated depressed prices. With the outrageous inflation of the US money supply since oduma took over, the price of gold should be much higher.
"Big trouble in big over-leveraged China..."
score one for the gold bugs. a price reset
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.