China's Pan Asia Gold Exchange: A New Playing Field for Speculators?
By Vivian Ni
China Briefing, Hong Kong
Tuesday, October 11, 2011
Submitted by cpowell on Tue, 2011-10-11 17:31. Section: Daily Dispatches
http://www.china-briefing.com/news/2011/10/11/chinas-pan-asia-gold-excha...
In an age when the assets of insolvent Western economies are becoming less reliable and international investors appreciate gold as a safe haven, the Chinese know it is time for them to play a larger role in the global gold market. The Pan Asia Gold Exchange (PAGE) opened earlier this year allowing gold trade in China's own local currency, the renminbi, may make China the new center of the global gold market and even trigger a bigger wave of speculative gold buying and selling.
Established on March 31 this year, the PAGE is located in Kunming, the capital city of China's southwestern Yunnan Province (an area well-known as a major gateway to Southeast Asia). The new gold exchange -- which markets itself as China's "gold supermarket" -- will allow individuals to buy physical gold or speculate in gold future contracts through an RMB account with a bank or broker. Initially, all the clients of PAGE's two settlement banks -- the Agricultural Bank of China and Yunnan’s local Fudian Bank -- will be able to buy 10-ounce T+D contracts on the PAGE...
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