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China Push For Gold Pricing Power Continues, Grant 3 New Import Licences

Tyler Durden's picture




 

Three more banks have been permitted to import gold to China, as IBTimes notes, the country redoubles its efforts to attain pricing power of the commodity. The move, which brings the number of firms allowed to import gold into China to 15, comes ahead of the SGE launching its Yuan settled bullion exchange, in hopes of replacing the now discredited London Fix and become a price-discovery center. Shanghai Pudong Development Bank and China Merchants Bank were joined by Standard Chartered - only the 3rd foreign bank to be allowed to import gold into China as the nation continues to increase the pace of liberalisation of the gold market following the approval last year of the country's first gold-backed WTFs.

 

As Reuters reports,

China has allowed three more banks, including a foreign lender, to import gold, sources with direct knowledge of the matter said, as the world's top gold buyer gears up for its strongest effort yet to gain pricing power of the metal.

 

...

 

Standard Chartered, Shanghai Pudong Development Bank and China Merchants Bank were given regulatory approval recently to import gold, five sources with direct knowledge of the matter told Reuters.

 

...

 

China approached foreign banks, gold producers and refiners to participate in SGE's international bourse, sources told Reuters earlier in the year, to boost its position as a price-discovery centre for gold. It plans to launch three physically-backed gold contracts.

 

The chairman of the exchange said in June that China should have its own pricing benchmark as it is the biggest consumer and producer of gold.

 

"The new import licenses seem to be well-timed. Along with their upcoming new exchange, they are clearly showing that they want to make the market more accessible, and easier for foreign players," said one precious metals trader in Hong Kong.

As IBTimes continues,

The news comes as Shanghai's international bullion exchange is on the verge of launching – a flagship initiative in China's attempts to wrest gold pricing power away from London.

Currently, the setting of the gold benchmark is determined twice daily on the London bullion market by Barclays, HSBC, ScotiaMocatta (the bullion banking division of Scotiabank), and Société Générale. China – along with Singapore – has been looking for ways to muscle in on the so-called 'gold fix'.

Opening the import market to three additional banks – Standard Chartered, Shanghai Pudong Development Bank, and China Merchants Bank – shows the Chinese government is willing to show some flexibility in order to do so.

The decision to permit a foreign lender is even more significant and, along with the fast-developing Shanghai Special Economic Zone, demonstrates the ongoing liberalisation of China's banking and commodity networks.

With the country's decision to permit gold-backed exchange-traded funds last year, as well as extending gold trading hours, its ambition of becoming a price discovery centre is growing closer.

Standard Chartered becomes just the third foreign bank after HSBC and ANZ to be permitted to import gold to China.

*  *  *

Of course, as we noted before, the timing of this liberalization also coincides with the collapse of the CCFD ponzi system and perhaps enables gold promises to be met more efficiently.

 

China's apetite for physical gold, which is further shown below focusing just on 2012 and 2013, has been estimated by Goldman to amount to over $70 billion in bilateral trade between just Hong Kong and China alone.

 

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Wed, 08/20/2014 - 21:33 | 5123272 alexcojones
alexcojones's picture

Some good PM news finally. . .

Thousands of silver coins discovered in condemned St. Cloud house
Treasure: 30 lbs of silver coins hidden for decades. . .

http://www.orlandosentinel.com/news

Wed, 08/20/2014 - 21:46 | 5123363 Bossman1967
Bossman1967's picture

Dammit they found my stash. But didnt find the gold and platnum.

Wed, 08/20/2014 - 22:36 | 5123642 linniepar
linniepar's picture

Bearishly bullish!

Wed, 08/20/2014 - 22:13 | 5123502 GrinandBearit
GrinandBearit's picture

Fucking cops "waiting" for someone to claim it.  They should be notifying relatives.

A bunch of worn walking libs is hardly a treasure. 

Wed, 08/20/2014 - 22:19 | 5123541 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

About $500 Face Value in circulated 90%.  Value about $9000.  Cops probably kept the Gold:)

 

Tuco

Wed, 08/20/2014 - 23:20 | 5123807 kill switch
kill switch's picture

A little short of a monster box....SO? Hidden for decades,,,, before the fucking over the top manipulation.......ASK $19.55 Some people bought at $48.00 these mother fuckers at all the regulatory agencies went to sleep FUCK THE CFTC......CME And they bought it for $2.00 but their dead now....from St. Cloud,FL

Wed, 08/20/2014 - 21:37 | 5123305 TeamDepends
TeamDepends's picture

It is a strange day indeed when we find ourselves rooting for the Chicoms and Russians, but such are the End Times.

Wed, 08/20/2014 - 21:39 | 5123320 Termin8or
Termin8or's picture

Amen Brother,  it is definitely weird......

Wed, 08/20/2014 - 21:41 | 5123339 TeethVillage88s
TeethVillage88s's picture

I support this announcement.

- Team Vodka

Wed, 08/20/2014 - 22:06 | 5123468 Chupacabra-322
Chupacabra-322's picture

Here, here. The Tri-Fecta.

Wed, 08/20/2014 - 22:14 | 5123511 realWhiteNight123129
realWhiteNight123129's picture

Well it is just the end of the current power structure opf the united States of America. Hopefully they get kicked quickly so America can reboot. 

Wed, 08/20/2014 - 21:41 | 5123331 logicalman
logicalman's picture

Personally, I'm rooting for humanity and hoping (not confident) you are wrong on the 'end times' bit.

Wed, 08/20/2014 - 21:50 | 5123389 NOTaREALmerican
NOTaREALmerican's picture

In 5 years we'll all be here bitching about the same thing,  car loans will be for 20 years,  there will be 8 trillion is student load debt,  the "algos" (but no humans) will be "trading" on Yellens "words",  Japan will be crashing, the BRICS will be threatening, the Elysium class will be richer than ever, bread will be 10 buck,  and the true currency (the DOW dollar) will be at 40k (but we won't have any, because it's all gonna collapse any time now and "you just wait-n-see").

Wed, 08/20/2014 - 21:58 | 5123419 LasVegasDave
LasVegasDave's picture

Cant eat gold, listen to music on it, or make a call with it.

 

So its worthless, right?

Wed, 08/20/2014 - 22:03 | 5123452 NOTaREALmerican
NOTaREALmerican's picture

No, but think how much you'll be able to buy with the DowBuck at 40k?

Thu, 08/21/2014 - 03:22 | 5124163 CHX
CHX's picture

Green fiat bank note usages in desparate times: fire fuel, a$$-wipes, camouflage, wall paper, fill an empty stomach to feel less hungry (with the bonus that you get some food fibres), ...

What else? 

 

Thu, 08/21/2014 - 08:49 | 5124540 man of Wool
man of Wool's picture

It looks pretty. Be cool. You can make yourself a nice shirt.  http://www.zerohedge.com/news/2014-08-09/what-every-well-dressed-indian-...

Wed, 08/20/2014 - 22:06 | 5123456 bitterwolf
bitterwolf's picture

world does not exist in vacuum ie. prior to bretton-woods and the petro-dollar the world financial picture was amazingly different,ergo ,precious metals aside NEW INFO is always around the proverbial corner,lesson of history.

Cheers

Thu, 08/21/2014 - 00:50 | 5124028 Tegrat
Tegrat's picture

THE ALGO, if they are smart will be buying on the Fed news talk and sell next day with 1/2 ATR trailing stop. THATs how  you beat the market.

Wed, 08/20/2014 - 21:46 | 5123366 Greenskeeper_Carl
Greenskeeper_Carl's picture

I am nit rooting for anyone or anything except personal freedom and sound money. That said, do you really think it is in China's interests to have gold "go to the moon" right now? I don't. People in who want it to shoot to the moon tomorrow, or who think china wants it to are wrong IMO. Thinks aren't going to well domestically for them right now. A massive gold spike indicates a lose of faith in paper money, including theirs. And they have enough domestic economic problems without a currency crisis, or the US having a currency crisis. They still need us to buy their cheap shit in our retail outlets. And as for me, I am young and my timeline is long. Sure, this whole Ponzi scheme is going to come apart at some point, but I'm not in a hurry for it to happen, anyone who is in a hurry is insane or stupid, cuz it's not going to be pleasant, no matter how well stocked your bunker is. I'm perfectly happy to keep buying at tees prices. They can feel free to push it lower, I'm not in a hurry.

Wed, 08/20/2014 - 22:06 | 5123466 logicalman
logicalman's picture

One day, it won't be a matter of the 'price' of gold, it will only matter whether or not you have any.

Wed, 08/20/2014 - 22:10 | 5123488 Chupacabra-322
Chupacabra-322's picture

Guns, Gold, God*, & Butter.

Wed, 08/20/2014 - 23:21 | 5123729 RaceToTheBottom
RaceToTheBottom's picture

I am asking the same questions as you:  Why is it in China's interests to act any different than the USA or EU Fed vehicles?  In fact China wants probably wants the same level of control that the US has exercized.

 

Plus China has printed 3X what the US has.  That does not bode well for any change....

 

Thu, 08/21/2014 - 00:15 | 5123970 Squid-puppets a...
Squid-puppets a-go-go's picture

it bodes perfectly well for a reset of the gold price sufficient enough to offset the debt

Thu, 08/21/2014 - 11:31 | 5125296 RaceToTheBottom
RaceToTheBottom's picture

Works for the EU, who values their gold at market, but the US does at 40$, if they have any more....

Wed, 08/20/2014 - 21:56 | 5123413 eddiebe
eddiebe's picture

The enemy of my enemy is my friend.

Thu, 08/21/2014 - 00:24 | 5123984 123dobryden
123dobryden's picture

ITS ONLY BEGINNING TO END, when you will root for Hezbollah or ISIS, then the real fun will begin

 

....btw.....gold back WTF??? LOL

Wed, 08/20/2014 - 21:38 | 5123318 alexcojones
alexcojones's picture

Silver hoard house from link above: TAX-CESS

   "The last owner of the house, Lamarr LoMax Lowe, abandoned it last year after failing to pay $511,500 in code-enforcement liens including daily $250 fines for more than 10 years, according to city records.

A former Walt Disney World employee, Lowe bought the 776-square-foot house in 1991 for $39,900."

FUCK THE STATE . . . BITCHEZZ

Wed, 08/20/2014 - 21:43 | 5123350 logicalman
logicalman's picture

If you think you own your house, stop paying your property taxes.

You'll soon find out who really owns it.

It ain't you! You just sold your soul to the banksters.

Wed, 08/20/2014 - 21:47 | 5123368 TeethVillage88s
TeethVillage88s's picture

Holy Shitter Pops;

Is Lamarr LoMax Lowe even a real name? Damn, $511.5 Thousand in fines on $39 Thousand dollar house???

Who is Nazi Now?? How do you like me now??

Thu, 08/21/2014 - 06:41 | 5124260 Winston Churchill
Winston Churchill's picture

Most all the foreclosure property I've looked at has  ongoing code violations.

Councils have made up the money shortfall from permits, by being very aggresive on

violations, the banks don't seem to care.

Most councils will not negotiate either.

$100k in code liens is about average.$551k is an exception.

Wed, 08/20/2014 - 21:41 | 5123341 Kirk2NCC1701
Kirk2NCC1701's picture

How much of the Precious is the Bank of the Temple of Solomon importing?

At BTFD/10 prices.

Wed, 08/20/2014 - 21:54 | 5123404 TeethVillage88s
TeethVillage88s's picture

BTW I'm Guessing Temple of Solomon is a Tribute to Sumerian Gods or Akkadian Gods which are originally from Sumer (Shumer, Shinar).

Jews know all this, but like all Rajs they like to control Info, History, and Technology. We don't know crap since the Cleric and Clerk and Families control everything.

But chose your god & your Religion as you see fit. No one else can. But Jews & the old Testament are just a little rewritten to change the language, the gods, the city names, the names of people, and then... for some reason they added all this stuff to denigrate gentiles and allow pederasty.

Well I guess. (Anyone know the truth here?)

Wed, 08/20/2014 - 22:08 | 5123474 NOTaREALmerican
NOTaREALmerican's picture

What about the Chinese and Japanese?

Wed, 08/20/2014 - 21:42 | 5123347 NOTaREALmerican
NOTaREALmerican's picture

Goddamn commies;  we shoulda nuked them sons-a-bitches in Korea when we had the chance, but that goddamn panzy liberal Truman held back our military,  now look at where we are.  

Wed, 08/20/2014 - 22:13 | 5123506 falconflight
falconflight's picture

Sarc on/  right?

Wed, 08/20/2014 - 21:49 | 5123386 Cheduba
Cheduba's picture

Gold-backed WTF? WTF!

Wed, 08/20/2014 - 21:52 | 5123399 Irishcyclist
Irishcyclist's picture

My thoughts exactly.

I'm almost afraid to ask, but what are gold-backed WTF's? 

Wed, 08/20/2014 - 21:56 | 5123414 SHEEPFUKKER
SHEEPFUKKER's picture

It's probably what you think it is....paper certificates backed by promises of the phyzz, or gold backed WTF's. 

Wed, 08/20/2014 - 21:57 | 5123415 mayhem_korner
mayhem_korner's picture

 

 

I think they are lawyers for Jamie Dimon. 

Wed, 08/20/2014 - 22:19 | 5123535 logicalman
logicalman's picture

I think a gold-backed WTF is what happens with an ETF eventually.

Wed, 08/20/2014 - 22:26 | 5123571 realWhiteNight123129
realWhiteNight123129's picture

The WTF! is now a new currency which is replacing the USD.

You do not say the price of AAPL is 100 USD, but the price of AAPL is 100 WTF!?

Similarly if you live in 1965 teh price of gold was 35 USD. Now it is 1300 WTF!?

And it goes on and one , the price of milk is  $3.55 WTF!?

The price of gasoline is ... WTF!?

The price os beef is .... WTF!?

Contrarily to popular belief, the WTF!? are not convertible for Gold. 

It is expected that the use of the WTF!? in day to day commerce and language will quickly accelerate as the monetary debasement of the USD continues...

 

Thu, 08/21/2014 - 09:41 | 5124758 _ConanTheLibert...
_ConanTheLibertarian_'s picture

WTF?! where's my WTF!?

Wed, 08/20/2014 - 22:05 | 5123459 techstrategy
techstrategy's picture

Just sell all momentum stocks and use the proceeds to raise cash and buy gold.  Let the TBTF bullion banks go to war with the growth cartel...

Wed, 08/20/2014 - 22:10 | 5123486 q99x2
q99x2's picture

The Queens are throwing a hissy fit.

Wed, 08/20/2014 - 22:23 | 5123557 walküre
walküre's picture

Anyone eles reading a number of articles / sources claiming that China is allegedly dumping its gold en masse?

Best Buy Call Ever

Wed, 08/20/2014 - 22:45 | 5123678 Dr. Bonzo
Dr. Bonzo's picture

  in hopes of replacing the now discredited London Fix and become a price-discovery center.

Riiiiiiight... because we all know China is the epicenter of truth and forthrightness.

 

Pffffffff.

Thu, 08/21/2014 - 00:34 | 5124005 teslaberry
teslaberry's picture

no china wants power to shift to china. they want the same power the  west has. and to get it they must use the same strategies and tactics. 

 

has nothing to do with honesty everything to do with the power to determine the price of things. 

he who determins the price, determines the raquet. 

Thu, 08/21/2014 - 10:00 | 5124825 Toolshed
Toolshed's picture

Clearly, this is China employing a long-term, and apparently well thought out, strategy to undermine the reserve currency status of the USD.

Thu, 08/21/2014 - 07:47 | 5124361 vyeung
vyeung's picture

you are getting the plot all wrong.

Singapore, Malaysia, Russia, HK, Shanghai, etc are going to be linked. Don't focus just on this one exchange. The pricing will be discovered within the region. Yes, the chinese thus far are far from Mr. Clean, but its way better than ZERO physical delivery that settles in a bankrupt ccy. Atleast the Yuan is wealth a hell lot more than the defunct USD. Also, this operates within a free trade zone with its own international level law and order outside of the yet to be completely modernized Chinese local market law.

Wed, 08/20/2014 - 23:44 | 5123898 teslaberry
teslaberry's picture

 

it's fairly simple folks. nixon closed the gold window. the first time the LBMA fails to deliver  a sizeable contract , the entire LMBA will collapse. 

now we all know , they are pretty good about being able to force customers to take settlement in dollars or pounds or fiat. 

 

however---if you were china----or russia---don't you think you could somehow manage to help arrange for a massive customer, one with clout ---political and financial and MILITARY backing------to make a publicly embarrasing 'event' for the LMBA. 

an event like that can be a tipping point for driving volume and market activity to a different exchange that is more than ready to honor promises. 

that is what financial warfare is about on the high level grand chessboard of global finance. 

 

oh yea, there's one obvious major problem with the scenario i outlined above. WAR. all bets are off if that shit happens.

 

Thu, 08/21/2014 - 03:04 | 5124155 Spumoni
Spumoni's picture

Yeash, but let's face it - they let Standard Charlatan in-doesn't bode well for the integrity of the exchange. My guess is that this is a response to the increasing urbanization of China's population, govt's desire to wean off of an export-reliant economy, and the very sensibe building of financial infrastructure so that it isn't reliant on Europe or the US for so much of its transactionality.

No question, though-I want a stash of WTF?'s. 

Thu, 08/21/2014 - 00:21 | 5123976 lasvegaspersona
lasvegaspersona's picture

If China opens a purely physical market then there will be a collapse of the LBMA  on day one. There is almost no physical gold available for this market.

Yes you can buy or sell 200 tons of paper gold any time but in our current market one can simply not buy and expect delivery of physical in almost any large weight.

I'm betting they are just going to duplicate the LBMA model with a Chinese feeling. Some of those paper promises will be re-written in another language and transferred to the East....if not this will get interesting very quickly.

Thu, 08/21/2014 - 01:57 | 5124100 walküre
walküre's picture

you speakest the truth and there's a gold hatin' junkie going around

Thu, 08/21/2014 - 03:01 | 5124152 Spumoni
Spumoni's picture

WTF? An article about gold on ZH? I'm stunned.

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