China plans in the Year of the Dragon by evaluating the invasion of the world gold market. Has prepared a plan to transform Shanghai into an international hub after the second London Gold Trading and began implementation. Will be the first step in this regard on 31 August when the next will start the banking sector in Shanghai Stock Exchange pricing of the first contracts for the sale and purchase of gold.
Shanghai Stock Exchange opened for international trade gold in the Year of the Dragon, but the preparation of plans for the Chinese dragon jumped about gold bullion began before five a ‘mother. As a result, China has overtaken the gold market for the first time on Indian counterparts in the first quarter of this year. The volume of demand for gold which 255.2 tons compared to 207.6 tonnes in India. Therefore there is no doubt that the experts in China will become the largest market for gold trade in the world as indicated by the results of this year.
Expert believes that Igor Costikov dragon is not alone in helping China create a gold mining stocks. He said:
No country can prevent China from its establishment as the reserves of gold sufficient to support, in addition to domestic demand but also the whole region and asked him to great use in various fields, including the jewelry industry. In addition, India needs to countries of South-East Asia. The electronics industry needs gold industry. In summary, China’s economic sites and geographical are very favorable to ensure the performance of this market.
See the gold market rebound today. According to the Institute analyst Igor Costikov stock exchanges that the Shanghai Stock Exchange to trade gold will be an important tool in the hands of China to control prices to. He said:
The emergence of the International Centre mentioned evidence that China is seeking to price leadership in this area, and on the back of the recent global scandals that are related to one of them to register interest rates illegally in the London market banking. Some think that the same thing is happening in the oil market. It is not unlikely to see the gold market is the other such manipulations. Clearly, the Shanghai Stock Exchange will compete with other markets, gold.
China believes is necessary to control the price of gold for several reasons, is one of them that the Chinese are in the conditions of growth of inflation put their money to buy coins and gold bullion because gold is more secure than the Securities and especially after the crisis has affected the bond market on the love of the Chinese game of speculation in the stock market in order to gain through the purchase and sale. It also notes in the Chinese real estate market aspects of the speculative bubble that could burst at any moment. Thus, the Chinese authorities will do their utmost to maintain the attractiveness of the gold market because they do not want a new social shocks can occur if gold prices fell sharply. Only in this case people will sell gold and thereby increase the demand for national currency notes (the yuan), with the knowledge that the authorities succeed in today’s directing an excessive amount of gold to the market thanks to the spread of liberal rules for buying and selling.
In the meantime, some experts expressed their concerns that the increasing share of China in the world gold market may lead to Beijing’s control it, as happened in the market for rare metals take advantage of China where these goods in some cases to raise the political pressure.