Opening up of Chinese Gold Exchange Looks like it's finally happening!

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"The Chinese economy tends to be a more closed place where access is limited for institutions around the world," says Lombardi. "This opening up to banks and investment houses around the world is significant for the Chinese economy."

The proposed changes may go into effect as early as August 31, 2012 and would make gold bullion the first commodity to trade on this platform in the Chinese economy, Lombardi explains.

"China can now say that the price of gold bullion that will be set on this platform can be used by people around the world as reflective of the price of gold bullion people can quote," says Lombardi.


source: http://www.bullionstreet.com/news/sge-to-set-up-new-gold-bullion-platform-to-help-investors/2539
 
so is this a good or a bad thing for gold prices in general? China dumping a lot of gold into the market I cant see as beinga good thing.
 
Keep in mind this is the Chinese. General opinion seems to be that anything they say should be considered a little suspiciously.

Is this a positive for free markets?
Or a tool for one hell of a price manipulation ability?
 
wrcmad said:
Keep in mind this is the Chinese. General opinion seems to be that anything they say should be considered a little suspiciously.

Is this a positive for free markets?
Or a tool for one hell of a price manipulation ability?
Click to expand...
I would say that the Chinese will be short paper to bring the price down and long physical while the price is down. That would be my plan anyway
 
Now it makes a lot more sense why PAGE was shutdown, and I'll bet why Magurie & Ned's new exchange will also probably never see light of day.

To clarify, I'm not talking about supressing the price, but that SGE wants the retail business to themselves. FYI consider this from a 20 July article in Aust Financial Review titled "Mao's guerilla tactics live on" quote:

They go on to describe Mao's involvement in rural healthcare, the function of unofficial or voluntary organisations, the uses of the law and the press, and the methods of local administration. In every case we see two things at work: local or at least non-central bodies trying things out, being observed or finally noticed at the centre; and central control then being brought to bear, including or adapting some of the bottom-up ideas and actions, while snuffing others out. ...

Heilmann says a strategy Maoists called "proceeding from point to surface" meant that a local initiative, if encouraged from the centre, could become a "model experience" and then national policy. Such procedures appeared as early as 1928, in the years when Communist forces were active in the countryside and long before Mao rose to supreme power inside the Party. "In sum," writes Heilmann, "experimentation has been a core feature of the Maoist approach to policymaking since revolutionary times."

A theorythen is that the "centre" observed PAGE, thought it was a good idea, and snuffed it out so central control could be brought to bear.
 
bron suchecki said:
Now it makes a lot more sense why PAGE was shutdown, and I'll bet why Magurie & Ned's new exchange will also probably never see light of day.
Click to expand...


born suchecki,

I like your analysis in past posts - but can you elaborate on why it makes sense that PAGE was shutdown?

Thanks
 
bron suchecki said:
Now it makes a lot more sense why PAGE was shutdown, and I'll bet why Magurie & Ned's new exchange will also probably never see light of day.

To clarify, I'm not talking about supressing the price, but that SGE wants the retail business to themselves. FYI consider this from a 20 July article in Aust Financial Review titled "Mao's guerilla tactics live on" quote:

They go on to describe Mao's involvement in rural healthcare, the function of unofficial or voluntary organisations, the uses of the law and the press, and the methods of local administration. In every case we see two things at work: local or at least non-central bodies trying things out, being observed or finally noticed at the centre; and central control then being brought to bear, including or adapting some of the bottom-up ideas and actions, while snuffing others out. ...

Heilmann says a strategy Maoists called "proceeding from point to surface" meant that a local initiative, if encouraged from the centre, could become a "model experience" and then national policy. Such procedures appeared as early as 1928, in the years when Communist forces were active in the countryside and long before Mao rose to supreme power inside the Party. "In sum," writes Heilmann, "experimentation has been a core feature of the Maoist approach to policymaking since revolutionary times."

A theorythen is that the "centre" observed PAGE, thought it was a good idea, and snuffed it out so central control could be brought to bear.
Click to expand...


I guess the recent acquisition of the LME by the HKE also fits this theory.
 
Will this help remove the manipulation that pm's have been suffering for so many years.....Hopefully will bring some 'realistic' and solid pricing into the game and stop the thieves making all the profits???
 
Thought I'd revisit this topic after reading a recent 'Daily Reckoning' (see: http://portphillippublishing.com.au/pro/n07chinab2.php?code=ESMSN856&n=n07chinab2#continue) Forewarning those interested in reading the info on the link that the author IS ultimately trying to sell you a book and some advice. But not before putting forward what I consider to be a very thoughtful theory on China's financial development over the next few years & golds essential roll in it. Quite timely considering we should see China release onto the global market their first gold ETFs priced in yuan sometime in September. Also these ETFs will be priced against the Shanghai Gold Exchange.
 
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