China Launches Yuan-Denominated Gold Price at Shanghai Gold Exchange

Discussion in 'China' started by anoop_mig25, Apr 20, 2016.

  1. anoop_mig25

    anoop_mig25 Senior Member Senior Member

    Aug 17, 2009
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    By Jason Hamlin |April 19th, 2016| Gold & Silver Commentary

    On April 19, China officially validated the rumor and initiated a new Yuan denominated gold price at the Shanghai Gold Exchange (SGE). China is for the first time challenging Western powers in London and on the COMEX for influence in the gold market. As price discovery moves from West to East, many expect an upward revision to the gold and silver prices.

    This is also coming on the heels of Deutsche Bank admitting to rigging the gold and silver price. As part of their settlement, it is rumored that they are going to rat out the other banks that also participated in the price manipulation. Lawsuits have already been launched, claiming billions of dollars in damages to investors of precious metals or mining stocks over the past six years.

    These two events combined have the potential to remove or at least diminish the long-running gold price manipulation by the big banks. We certainly aren’t holding our breath quite yet, but the price action today was a good start with gold up 1.6% to close above $1,250 and silver up a massive 4.2% to close at $17.

    Can anybody explain what political /economical /strategic significance of this step by china

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