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 Replies: 11 / Views: 1,103 |
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Pillar of the Community
United States
1126 Posts |
I was just looking to get some thoughts and opinions On the Opening on the Hong Kong Metal Exchange Friday. and what people might think will be the effective of a new Exchange on the price of metals. And the ability for the powers that be in our small market to continue to manipulate it.  |
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Pillar of the Community
United States
4008 Posts |
That is an interesting question, Stew. It would be of great help to know who the financial backers are of this new exchange. My guess would be that the Chinese government would be involved to some extent and probably the Bank of China (yes, I know, not much difference there). My question would be... is there any involvement with the British and American banks?
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Pillar of the Community
United States
830 Posts |
I hadn't even heard about it until now.
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Pillar of the Community
United States
931 Posts |
More Market exposure should mean a new source of demand for a limited global supply of precious metals It may cause a fairly large short term rise in price until the demand is filled in the new market. Most of the buyers probably had access to other Asian markets but this will make buying on the market much easier for some.
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Pillar of the Community
United States
4008 Posts |
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Most of the buyers probably had access to other Asian markets but this will make buying on the market much easier for some. I agree. No telling what the local demand will be but it could be significant. The Chinese people are able to travel a bit more easily than they once were. If they could get to Macau or Malaysia, they might be able to buy PMs there. If not, then a Honk Kong exchange might serve their needs. China is encouraging their citizens to hold PMs, so they should be willing to facilitate them buying PMs from this new exchange. It will be interesting to watch and see what happens with this. |
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Pillar of the Community
United States
1450 Posts |
I have a really stupid question but I can ask it here because you guys are friends! On CNBC this morning several people were mocking gold buyers,you know,the usual crap about why gold isn't really useful,then Jim Cramer says(this is paraphrased of course)then why are all of the Central Banks hoarding gold? That should tell us something! Now,my question,Where do the Central Banks buy their gold? Some would come directly from the mines in certain countries I would guess,but I KNOW they aren't paying the premiums you and I are. Who are they buying from?and at what price? Anybody know?
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Pillar of the Community
United States
931 Posts |
Anybody wonder why the treaury won't let us audit Fort Knox and The Bank of New York?
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Pillar of the Community
United States
860 Posts |
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The Chinese people are able to travel a bit more easily than they once were. If they could get to Macau or Malaysia, they might be able to buy PMs there. Last I read, mainland Chinese and Hong Kong/Macau Chinese are treated as if they are in different countries. They have to have the equivalent of a passport type of document to go to the "other" China, with inspections and stamps.I don't know if there is any restrictions on PM, but there are on amount of currency , similar to US/Mexico borders ( but that is common for many borders) Jim |
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Pillar of the Community
United States
1285 Posts |
It should be negligible.
Say there is a NEW gas station in a large city. Does it change the amount of gasoline that is consumed? No. It will / may change where folks shop for gasoline based on price and convenience.
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Pillar of the Community
United States
4008 Posts |
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It should be negligible. Not necessarily. Hong Kong has been a world banking center for some time now. It is just about as important in world banking circles as are NY and London. Having a PM exchange there only makes sense. Asia is rising in financial and economic importance. This is just another sign of that rise. Quote:
They have to have the equivalent of a passport type of document to go to the "other" China, with inspections and stamps. Yes, as is typical in all communist run countries. It IS possible to travel now where it was not 15-20 years ago. It probably still isn't all that easy. They have to KNOW the right people and make the right bri... er, gifts... to get the needed travel papers signed. Quote:
Anybody wonder why the treaury won't let us audit Fort Knox and The Bank of New York? No, I don't. Funny thing about this is, those who are in a position to know all about this say that it isn't necessary to audit these places because they were already audited before and nothing has changed since then. The funny part is that without an audit, there is no way to know if something has changed. That is the purpose of the audit. It is somewhat humorous that this excuse is offered while the government continues to do a LOT of other useless, unneeded, and unnecessary things. |
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Pillar of the Community
United States
1285 Posts |
Yes, HK has been a financial center for the last 35 plus years. Adding a new venue to trade PM's is just transferring / centralizing what they were already doing. The metals exchange is a market place and has nothing to do with supply and demand. Based on your analysis of a new market place creating demand / buying this same NEW market place can and will create supply / selling. Be hedged.  |
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Pillar of the Community
United States
4008 Posts |
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The metals exchange is a market place and has nothing to do with supply and demand. An interesting concept... a supply and demand free market... hmmm... |
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Replies: 11 / Views: 1,103 |
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Posted 07/25/2011 12:07 pm
