"The Hong Kong Mercantile Exchange (HKMEx) started trading its first gold futures contract yesterday, responding to a surge in demand for the precious metal among regional investors during the past few years. The 32 troy ounces futures contract is denominated in US dollars, with physical delivery in Hong Kong for the first time. " http://www.financeasia.com/News/257...d-futures-contract-for-physical-delivery.aspx What will all this mean? More Paper? More opportunity for control of metals? or less control for the banksters? or just a way for China Russia and India to Gobble up more Supply? An interesting thing to take onboard from the article - " Most notably, it intends to offer renminbi-denominated gold futures by the end of the year" what are everyones thoughts!
Is this an opportunity for the Chinese Government to systematically change all the US dollars it is holding into physical gold by stealth? It appears to be on the global market buying commodity businesses, anywhere and everywhere, at premium prices. It would seem that when the music stops, China will have more than one chair at its disposal!
theoretically you should get better price discovery through arbitrage possibilities between exchanges. ie if silver gets knocked down too low in the US you could buy on the comex exchange and sell the hong kong exchange and cream off the difference.
