China positioning to control gold

Posted | 16/06/2014 / Views | 2219
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There’s an old saying ‘he who holds the gold makes the rules’.  

Well the head of the Shanghai Gold Exchange (SGE) has just made it abundantly clear that the new world powerhouse in gold wants to see a move away from pricing determined by paper trading in New York and the London Fix, especially in light of the current questions of manipulation over the latter.  

He said in 2013 SGE saw 428 tonne of Chinese production and 1540 tonne net imports, dwarfing anything elsewhere in the world.  He says they have a clear agenda of having an influence on world pricing and management to match the scale of their trade and also are seeking to see SGE (who already have 8,000 institutional and 5 million individual investors) internationalised with more trade done in Renminbi / Yuan not USD.  Sound familiar….?