Hong Kong Mercantile Exchange's 1 Kilo Gold Contract To End Comex Gold Futures Trading (And "Bang The Close") Monopoly

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Sun, 05/08/2011 - 14:43 | 1253344 WmMcK
WmMcK's picture

Competition, bitchez!

Sun, 05/08/2011 - 14:51 | 1253371 Manthong
Manthong's picture

And so it begins..

Sun, 05/08/2011 - 15:00 | 1253391 DoChenRollingBearing
DoChenRollingBearing's picture

+ $1490

At long last we have more competition in the PM markets.  The more the merrier.  Probably less manipulation is the icing on this cake.  Bravo Hong Kong.

I would guess that the PMs may indeed have a nice big run-up soon.

Sun, 05/08/2011 - 15:06 | 1253414 jkruffin
jkruffin's picture

They could be just trying to join in on the corruption, and get their piece of the manipulation pie. I wouldn't celebrate this move too soon, because alot of ugliness in the markets is about to occur.  Like they say, if you can't beat em', join em'. Stocks and bonds are the next to take the 20% dive.

Sun, 05/08/2011 - 15:31 | 1253501 DoChenRollingBearing
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That of course is very possible.  But, typically when there are more players in the game, it often means the game is cleaner overall.

That's for you traders.

I'll just take the physical, thanks.

Sun, 05/08/2011 - 16:22 | 1253607 Wooly
Wooly's picture

"...The Exchange will begin trading with at least 16 members including some of the world’s largest financial institutions..."

Probably not "more players" just the same old ones in a different time zone. I fail to see how this changes the game to any great degree. 

Sun, 05/08/2011 - 16:42 | 1253652 RockyRacoon
RockyRacoon's picture

Yeah.  There are some familiar names in that group... especially the last one shown on the list... also showing up in the middle of the list.

Just another playground in my view.   Soak up the West's ready cash, run the system into the ground, then move East and do it again.

Sun, 05/08/2011 - 16:59 | 1253714 Manthong
Manthong's picture

Keep in mind that Bejing is China's front door, and Hong Kong is the side entrance or maybe the garage.

Mon, 05/09/2011 - 03:04 | 1254765 ED
ED's picture

Was originallyfor oil, apparently. Both touchy subjects, anyways

Mon, 05/09/2011 - 08:25 | 1254971 Kopfjager
Kopfjager's picture

I don't know about you guys but I prefer the back door.  Pandas and all bitchez!

Sun, 05/08/2011 - 23:25 | 1254536 Ben Fleeced
Ben Fleeced's picture

It's getting hot. Turn up the heat.

 

Sun, 05/08/2011 - 17:07 | 1253732 Cathartes Aura
Cathartes Aura's picture

perceptions.

the "same old players" may still be holding the strings, but the spin on the story just opened wide. . . everybody tells themselves a different story, depending on what their intended next moves requires them to believe in/act on, and now more stories (and conspiracies") will be told, as the game intensifies going forward.

a tangled web. . .

Mon, 05/09/2011 - 07:34 | 1254884 Thomas
Thomas's picture

I would argue that maybe the newest entrants to the game had a vested interest in making the aging exchange look bad. Nice timing in the least.

Sun, 05/08/2011 - 18:36 | 1253938 Tim White
Tim White's picture

   Key word= AUTHORIZATION...back to sleep, bitchez, all will be well.

Mon, 05/09/2011 - 06:02 | 1254812 zhandax
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Precisely.  It remains to be seen whether China is directing this effort or the Rothschilds are re-opening their old summer home.

Sun, 05/08/2011 - 21:50 | 1254347 gorillaonyourback
gorillaonyourback's picture

yes i see its to chinas advantage to manipulate the prices lower too.  if china does want to buy gold and silver wouldn't you think its in their best interest to manipulate the prices lower and get as much cheep gold and silver as possible?

Sun, 05/08/2011 - 23:07 | 1254488 tmosley
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Thing is, you can't do that without supplying actual physical.  If they are throwing physical metal at the market to keep the price down, then they defeat the purpose.  If they just wanted the price down, they would leave the status quo as is.  It seems to me that they know something big is about to happen, and want the markets to continue to function without the need for relying on Western exchanges.

Sun, 05/08/2011 - 23:34 | 1254552 nope-1004
nope-1004's picture

Yes, they have been buying gold and silver like crazy.  Turd had someone post something to that effect a while ago, claiming massive physical buying by them.

The more hands that are in the pot, the better the chance that true price discovery will be attained.

 

Sun, 05/08/2011 - 23:51 | 1254593 old naughty
old naughty's picture

@jkruffin  ++

G2 con-spired, joined in the hips.

The 0.1% is setting up the 20(less0.1)% while the 80% looking on. Expanded horizon.

Strange just got stranger...

Mon, 05/09/2011 - 12:50 | 1255950 SilverTech
SilverTech's picture

IMO they see an opportunity for an honest PM market to supplant the CRIMEX.

Die COMEX, Die. Pound a silver stake into the heart of the vampire.

Sun, 05/08/2011 - 15:01 | 1253401 Rynak
Rynak's picture

Was about time that a big player steps in to offer some diversification. While it remains to be seen how hong kong will behave much different, decentralization works against central manipulation... it may not prevent it, but certainly makes it more difficult.

Sun, 05/08/2011 - 18:41 | 1253950 Re-Discovery
Re-Discovery's picture

This is nothing more than the asia saying "stop that white boys shit."  And, by the way, if you try to print our treasury holdings into oblivion, our REAL PM market will check that shit in about 1 trading session.

Sun, 05/08/2011 - 18:45 | 1253958 Bananamerican
Bananamerican's picture

let's see what happens....

Sun, 05/08/2011 - 20:05 | 1254132 WizDumb
WizDumb's picture

mutually assured destrution...

Sun, 05/08/2011 - 16:00 | 1253574 onesoul
onesoul's picture

Not sure if anyone know, they are introducing Yuan denominated Gold Contract in Hong Kong CGSE very soon(Say next month on end of March).

http://www.cgse.com.hk/en/media_06_1.php?id=148

You see, Hong Kong is financially controlled by bankers(international and locals) and their friends(Regulators). So don't trust Hong Kong untill you can see the difference.

But, politically, China has a lot of influence these days and they are laying some ground work for Gold(1st) and Silver(later) market in Yuan. Before they decide to execute them, and until the trading volume pick up and a clear divergence b/w price on COMEX vs HKMEx and CGSE, gold and silver may still be subjected CRIMEX manipulation. It can takes months or years until these 2 markets divergence.

I believe it is Chinese call if they need a frontal assault by introducing Yuan based PM contract now or wait until later. I believe they don't want to play this card, just yet.

Mon, 05/09/2011 - 07:02 | 1254842 TGR
TGR's picture

PM's are traded and denominated in RMB in China (via the Shanghai exchange) anyway, so introduction of a yuan-denominated gold contract in HK would not make too much difference in the grand scheme in my opinion.

But you are right about the bankster-grip on Hong Kong. HSBC, Standard Chartered and Bank of China are the ones who physically print and supply Hong Kong dollars. Oh, and guess who just happens to be sitting on the monetary authority board of HK? Yes, it includes representatives from a couple of these entities, including a couple of gweilos/laowais (white guys, not just your stereotyped Hong Kong locals). Cosy.

As gold is traded in HKD in Hong Kong, long-term the HKD will reconcile with the RMB/CNY anyhow - that has long been the accepted non-written agreement between the lines - so should the USD drop considerably, and the RMB revalues considerably, the HKD (and associated gold trading in HKD) would align itself more with the yuan as opposed to struggling in its de facto managed range peg with the USD.

Mon, 05/09/2011 - 07:14 | 1254855 Non Passaran
Non Passaran's picture

Since the Yuan is tied to the dollar, why would Yuan-based PM contract be of special interest?

Sun, 05/08/2011 - 17:54 | 1253830 Keri at Bankste...
Keri at Bankster Report's picture

I don't know anything about Asian markets, but I do know that 1kg gold contracts have been selling on the Shanghai Futures Exchange for 3 or 4 years.  The roll of the SFE played on copper is, of course, very notable and the SFE loosened some of the grip of the LME's control of local prices in China (pre-yuan peg).

The SFE contracts are yuan denominated, but this new KongMEX will be in HK$, right?  Could this be a clue?  HK$ is still under a rather strict dollar peg, is it not?  While Yuan is appreciating this year, HK$ is not...

Forex confuses me: please correct me if I'm wrong.  What would the HK$ peg mean at KongMEX in a face-off with $ at COMEX and yuan at the SFE for an event, like for example, an increase in gold price in USD terms?  The price would go up on COMEX and HK in paired tandem and moved less rapidly or possibly hold still at the SFE in yuan (depending on the appreciate rate), right?  If so, does this look like a dollar hedge scheme for the Chinese to anyone else?  I'm working on a very low caffiene-blood level, so I hope I'm thinking this through correctly...

Mon, 05/09/2011 - 02:03 | 1254733 gorillaonyourback
gorillaonyourback's picture

wow interesting thought, dollar peged yuan at start of new hk exchange.  china has been telling its citizens to buy and store gold, right?  maybe buy as many new gold ounces as possible with as little usd as possible, because the article did say that gold will be settled in dollars.  if the hong kong market pays a little more every day for gold than the crimex, maybe a massive shift of physical gold to the hong market?  they will be paying a little more right? where ever in the world i live i get a higher price in hong kong, physical gold will be flowing there.  now here is the dirty part when china under this scenario gets all the gold it wants, they UNPEG the yuan. we will never get the gold back after that

Mon, 05/09/2011 - 07:23 | 1254864 Non Passaran
Non Passaran's picture

If you can get more $ for toz in HK, then you could buy in London (AM fix) and sell in Hong Kong. I don't know if AM fix would be "underpriced" day after day since that would mean free money.  I'd agree with TD (if I understand him correctly) that the main effect is that price of gold could get better support throughout the day.

Mon, 05/09/2011 - 04:43 | 1254796 old naughty
old naughty's picture

The 1-kilo gold future is offered in USD. They use London's LCH.Clearnet as clearing house. And they counted China's ICBC and Cosco Group as well as Russia's En+ Group as shareholders.

http://www.hkmerc.com/documents/Press_Release/20110427_en.pdf

Yuan denominated will come later this year. http://www.scmp.com/portal/site/SCMP/menuitem.2c913216495213d5df646910cb... btw, HKMEx President Albert Helmig was from NYMEX. http://www.hkmerc.com/documents/Press_Release/HKMEx_-_Albert_Helmig_-_Ap...

Sun, 05/08/2011 - 20:03 | 1254126 bonddude
bonddude's picture

Hopefully beginning of the end for the Morgue.

Mon, 05/09/2011 - 08:31 | 1254986 Kopfjager
Kopfjager's picture

Wait, would this suggest that the "smart money" currently in PM's will shift to Hong Kong's exchange?  I assume it could shift without taking a loss even at its current levels since the smart money was "priced in" months if not years ago. 

Or nothing would change at all since the price is universal and Hong Kong would uptick milliseconds after COMEX downticks?  I made a few words up, you're welcome.  

Help me out here.  

Sun, 05/08/2011 - 15:09 | 1253429 Mr Lennon Hendrix
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Rockefeller must be spinning in his grave.

Sun, 05/08/2011 - 15:37 | 1253509 shinyindallas
shinyindallas's picture

Well let's attach some rare earth magnet to the old boy and get him generating some clean energy. This could be the next clean power bubble. Someone call Leo.

Sun, 05/08/2011 - 15:41 | 1253528 DoChenRollingBearing
DoChenRollingBearing's picture

Neodymium and Dysprosium, bitchez!

Sun, 05/08/2011 - 18:27 | 1253931 Richard Chesler
Richard Chesler's picture

Meet the new crooks. Same as the old crooks...

Sun, 05/08/2011 - 18:48 | 1253971 Tim White
Tim White's picture

   Boss, criminal, creep, fuckwad, all the same...Thanks , Who!!!

Sun, 05/08/2011 - 18:47 | 1253956 Math Man
Math Man's picture

ETFs, bitchez!

The futures market lead the plunge, but ETFs keep it going!

People aren't focusing enough on the role that SLV and the commodity ETFs had in the silver move.

When they catch on, it's going to be really fucking ugly for Gold.   There may be an PM ETF bubble more than anything.

SLV bought 366 million ounces of silver since '06, but bought nearly 20% of it during the run!

It then proceeded to sell 36mm ounces in around 2 weeks.  More than the 35mm Silver Eagles the US minted last year.

I don't know what the hell is going on in the commodities market and with DXY right now, but if doesn't stop, it will trigger ETF selling and force gold to be arbed out of GLD. And if that happens, watch the fuck out!

Gold got crushed in '08, and a lot of that was driven by GLD selling its Gold. I'm looking for the repeat.

Buy puts on GLD, bitchez. 

Sun, 05/08/2011 - 18:52 | 1253975 Tim White
Tim White's picture

   Speaking of fuckwads...

Sun, 05/08/2011 - 19:02 | 1253993 Bay of Pigs
Bay of Pigs's picture

You have no idea what you're talking about concerning physical gold and silver demand. Everyone knows GLD and SLV are bankster frauds, so give it a rest. Nobody believes a thing you say around here.

Sun, 05/08/2011 - 19:16 | 1254022 Math Man
Math Man's picture

Yeah, I know, I was so wrong on silver that I made multiples more buying puts than any of you idiots made buying silver. 

Ignore me at your own risk.

If you really think they are frauds then buy puts, bitchez!

You can buy even MORE physical with the proceeds.

But I guess none of you are smart enough to figure that out.

Sun, 05/08/2011 - 20:30 | 1254185 slow_roast
slow_roast's picture

How could you possibly have made more money buying Puts in silver when it only dropped ~$15 than I did buying Calls when it ran up to nearly $50 after dropping to the mid-$20s just a few months ago?  Hmmm....I'm starting to understand why everyone calls you methman.  Clearly math is a toughie for you.

Sun, 05/08/2011 - 23:47 | 1254580 rocker
rocker's picture

Hope is not working well for him, I say.

Mon, 05/09/2011 - 01:23 | 1254705 eisley79
eisley79's picture

i am not on his side, but the answer to your question could only be leverage, I am assuming he is implying he went all in and then some on his beliefs...

Mon, 05/09/2011 - 02:34 | 1254747 Popo
Popo's picture

uh. trade much?

Sun, 05/08/2011 - 20:50 | 1254233 XPolemic
XPolemic's picture

Yeah, I know, I was so wrong on silver that I made multiples more buying puts than any of you idiots made buying silver. 

Yes, but then Mommy woke you up and it was time to get ready for school.

Sun, 05/08/2011 - 21:01 | 1254254 Crisismode
Crisismode's picture

No, Mommy woke him up for his diaper change.

Sun, 05/08/2011 - 20:59 | 1254258 tmosley
tmosley's picture

Bullshit.  You weren't right.  You were betting on one side of a volatility spread like a fucking moron.  You were bearish at $34, which was flat out wrong and stupid.  You only got lucky that you picked options as a strategy rather than going leveraged short.

You never even fucking knew what you were talking about.  ANYONE could make money playing volatility in silver.  EVERYONE knows it is volatile as shit.  Even I knew that, and expressed it publicly.  The only reason I don't ply it myself is because I am nice and secure with my own lifeboat, and see no need to spend any more time looting the Titanic.  You don't even see the water rising.  As such, when the ship slips beneath the waves for the final time, your ass will never be seen again.

Go fuck yourself, troll.

Sun, 05/08/2011 - 21:28 | 1254302 Math Man
Math Man's picture

The only one who doesn't know what they are talking about is you, Tmo.

You only got lucky that you picked options as a strategy rather than going leveraged short.

Options are a way to lever a short position, you stupid fuck.

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