Shanghai Gold Exchange moves a step closer to internationalising the Chinese gold market

Regular readers will know that we’ve been banging the drum about the move of physical gold from West to East for some time now.

Now we get yet more news that seems to confirm that the East will come to dominate the global gold trade in the years ahead.

The World Gold Council have singed a ‘Memorandum of Understanding’ regarding a ‘Comprehensive Strategic Cooperation Agreement’ with the Shanghai Gold Exchange. From the press release:

Today, the Shanghai Gold Exchange and the World Gold Council, the market development organisation for the gold industry, signed a ‘Memorandum of Understanding’ regarding a ‘Comprehensive Strategic Cooperation Agreement.’

So just what is the Shanghai Gold Exchange?

The Shanghai Gold Exchange is the largest physical gold exchange worldwide and the World Gold Council is the global authority on the gold industry.

And just what is their aim?

Together, these two organisations are joining hands to support the development of both domestic and international gold trading in China by leveraging the opportunity provided by the internationalisation of the Chinese gold market, through the Shanghai Free Trade Zone, to support market expansion. The agreement will support the development of gold investment products and solutions for the industry and investors both regionally and globally.

Yup, the SGE has it eyes set on the ‘internationalisation’ of the Chines gold market. This is important because it’s another move to strengthen and ‘internationalise’ the Yuan – something that it must do if it is to ever knock the dollar off it’s ‘world reserve’ perch.

This dates back to an announcement from September 18th last year:

On September 18, 2014, the International Board was officially initiated by the Shanghai Gold Exchange beginning the process of internationalising the Chinese gold market. The International Board allows international investors to use RMB to trade in precious metals and to use physical gold services such as storage, trusteeship, delivery, leasing and transit. By making these changes, the International Board is enabling greater interaction between China and the global gold markets.

The chairman of the Shanghai Gold Exchange, Xu Luode, has some pretty big plans for the exchange – nothing short of a ‘new global market structure in the gold industry’:

“The launch of the International Board of the Shanghai Gold Exchange marks a significant transformation, not merely by further integrating with the global market, but also by laying a solid foundation to establish a new global market structure in the gold industry.

Watch this space in the coming months, but this it big development in the world gold order – a move that shouldn’t surprise anyone, after all the Chinese are not only the biggest suppliers of gold on the planet they are also the number 1 buyers of gold – yes, even more than India.


Link to this article: : http://www.goldmadesimplenews.com/gold/shanghai-gold-exchange-moves-a-step-closer-to-internationalising-the-chinese-gold-market-12800/

Posted by on Jan 16 2015. Filed under Gold News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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