Dec 28, 2006

China makes gold more accessible to small investors

Συνήθως παραθέτω τα άρθρα που ανθολογώ απ'το διαδίκτυο ασχολίαστα....αλλά αυτή εδώ η πολύ bullish είδηση μ'έβαλε σε τούτες σκέψεις....
Φανταστείτε τι έχει να γίνει από τη στιγμή που σχεδόν κάθε Κινέζος θα έχει δυνατότητα αγοράς -έστω και 100gr.- χρυσού!...
...οι δε Κινέζοι είναι λαός που παραδοσιακά αγαπά το μέταλλο...


China makes gold more accessible to small investors

Lawrence Williams and Dorothy Kosich
'26-DEC-06 11:00'

LONDON and RENO, NV ( --From Monday (Christmas Day), The Shanghai Gold Exchange lowered the size limit for trading in gold bars from one kilogram to 100 grams in a move to make trading in the precious metal more accessible to small private investors. Initial trade on the exchange in the smaller units was very slow though, which the Exchange put down to the Christmas holiday season, despite trading in the old larger units being fairly brisk.

According to the Xinhua News Agency, in July last year the SGE proposed spot trading of gold by private investors in cooperation with the Industrial and Commercial Bank of China. However, the one-kg 160,000 yuan (US$20,000) threshold is thought to have turned off many private investors and the volume of spot transactions by private investors in the first 10 months accounted for only 0.57 percent of total trading.

As China becomes more of a consumer society with more disposable income flowing down to the general population, this kind of move could make a lot of sense in terms of the country’s gold market and demand there. However it seems it may take a little time to catch on, but if it does …….

The Year of the Pig (which starts on February 18th on the Gregorian calendar), suggests a year of good fortune to the Chinese and in 2007 this coincides with a metals year on the five year elemental cycle tieing in with the five major planets, and the metal associated with this is traditionally gold. So the combination of pig (good fortune) and metal (gold) might well lead to additional private investment in the precious metal once the New Year starts – and this should be made easier by the much lower threshold of entry.

According to the SGE provincial measures regarding the spot trading of gold, a private investor can participate in spot trading and even claim gold at warehouses in Shanghai, Beijing, and Shenzhen via any SGE financial members or other agents approved by the People’s Bank of China. Wong Hasang, the Chairman of Guizhou Xixibao Mining, said the lower SGE threshold would attract more small private investors.

Sales of gold bullion and gold bars account for more than one tenth of gross gold consumption in China. The President of the China Gold Association Cheng Fumin predicted that more investors will be attracted to spot trading and the number of transactions will be increased “as the SGE opens its door wider.” The SGE is also developing derivatives, including futures, options and investment funds, according to Xinhau



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