China’s impact on the gold investment market has regained attention due to gold price movements over the last 18 months and sharp price declines in April and June this year.
How did this huge economy and its people influence the movement of gold prices?
Many people turned out.
Looking back on how to set gold prices
Investors have long believed that the most important centers for discovering gold prices are in London and New York, citing the opaque London gold market and COMEX futures contracts.
However, the expanding scope of the Shanghai Gold Exchange seems to be competing in this market. With 240 tonnes of gold delivered in April compared to 3 tonnes of COMEX, this much more physical gold market has completely different dynamics than London or COMEX.
The London and COMEX markets are known for their fractional nature. That is, investors can lose confidence in these locations if they believe that the delivery of gold bars is not guaranteed.
Hedge fund manager Ned Naylor Leyland has been writing on this topic for some time. Other recent reports also show the superior physical properties of the Shanghai Gold Exchange, which has a much higher delivery rate compared to COMEX.
Everything is different in Shanghai
In contrast, the transparency of the Shanghai Stock Exchange, with its ability to offer large amounts of yellow metal, could be an increasingly attractive destination for investors to bid and bid. For now, the western market is likely to dominate the fixed gold price, but China’s eager desire to hedge the dollar-based financial system has led to China’s own new and improved gold market. I am. Visit:- http://ccsao13.com/
Western financial institutions have already established relationships on Chinese exchanges that allow traders access to these markets.
Over time, we will see how quickly China can conquer the West in this important area of gold trade.
As Max Keizer mentions 300 million Chinese housewives buying gold, if Ms. Wong is currently the most important factor in retail demand on the Shanghai Stock Exchange, she. With Mr. Watanabe. Mr. and Mrs. Smith. Western and Japanese. Individual investors are looking for a better market that meets their investment and business needs.
How does it fit into a currency war?
The Chinese are familiar with their position in World War. Therefore, they are very enthusiastic about their attitude towards precious metals and Bitcoin. They are trying to escape the disadvantages they are experiencing in the dollar-based financial system.
China is interested in getting as much out of the golden game as possible. It is a RMB backed by RMB, the largest and strongest trading market and exchange, and possibly the most efficient, transparent and reliable personal investment services and commodities.
China recognizes the importance of the Shanghai Gold Exchange in its long-term planning.
Note the growth and evolution of this exchange. It can only be an increasingly important center for fixing gold prices.