ANZ’s Warren Hogan and Victor Thianpiriya say central bank demand may drive the metal to new highs as China emerges as a gold trading hub. By WARREN HOGAN AND VICTOR THIANPIRIYA March 18, 2015 ASIA’S FINANCIAL TRANSFORMATION
The income effect implies that consumer purchasing power increases as real wages rise, and as such, the demand for gold will increase as more people can afford to buy it.
In Asia over the past few decades, the income effect has been dominant. The Asian economies (particularly China and India) have enjoyed strong growth, but still have a relatively tightly regulated and narrow financial system.
Gold has been a beneficiary of these challenges as it is largely not subject to the same regulations as the wider financial system.
Given that gold has also played a strong role in Asian cultures, the demand is even higher than purely financial factors would suggest.
China’s government is also actively pursuing greater participation in the gold market.
The SGE is working to open up the Chinese gold market to international investors by establishing the SGE International Board in the Shanghai Free Trade Zone (FTZ).
The opening up of China’s gold market to international investors could provide a sharp boost to trading volumes on the exchange.
The tendency of the Chinese market to trade at a discount or premium to the global spot price could also attract investors to the exchange, with the pricing of the contracts in RMB being another attractive aspect.
Tradepenny thank you, fiat Dollar Is Now Toilet Paper – ? - Get Ready -
when China back up their reserve currency with gold -
all Rothschild's banks have to follow -
they will confiscate the peoples gold - ex....
Effect of the order -
Executive Order 6102 Executive Order 6102 required all persons to deliver on or before May 1, 1933, [color=red]all but a small amount of gold coin, gold bullion, and gold certificates owned by them to the Federal Reserve, in exchange for $20.67 (equivalent to $376.58 today[4]) per troy ounce. Under the Trading With the Enemy Act of 1917, as amended by the recently passed Emergency Banking Act of March 9, 1933, violation of the order was punishable by fine up to $10,000 (equivalent to $182,185 today[4]) or up to ten years in prison, or both.[/color]
The people will hand over the gold to the Rothschild's banks - the people will NOT GO TO JAIL FOR 10yrs -
Rothschild has figured out how to get the peoples all gold for the fiat 666 poncy scheme - it worked for Rothschilds fed in 1933 - it will work again - crimminals often will repeat the crimes to they get to jail -
I don't buy physical and only Precious metal mines producers - they will be on 3shift / day / production - like Homestake was in 1933 -
dd.... CALVF Chart TI P&F TA Bullish price objective $4.38 per share 1st Target -
CALVF - Africa's lowest cost gold producer - doing very well - Ex. CALVF - NO DEBT - CASH >$27 million in London banks - CALVF - Paying 8% Dividend - CALVF - Gold produced @ $599/oz - CALVF - Sold 51% of Blanket Mines for >$30 million - - to mine workers and their community etc. - CALVF - collecting 10% on the >$30 mil. to payed in full - CALVF - Managing the Blanket Gold Mines -