Author Topic: Chinese-currency gold trading a step toward the yuan’s ‘internationalization’  (Read 1485 times)

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Offline pandayo

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The world’s first offshore yuan-denominated spot gold contract started trading on Monday in Hong Kong and analysts are touting its convenience for Chinese investors and see it as a step toward making the yuan a global reserve currency.

The Chinese Gold & Silver Exchange said Monday that the service, dubbed “Renminbi Kilobar Gold,” is designed to appeal to both retail and institutional investors.

The amount of gold settled was 322 kilograms, at a settlement price of 346.95 per gram, according to a press release from the CGSE.

The launch of yuan-denominated gold trading makes it “more convenient for Chinese people and high net worth individuals holding yuan to invest in the precious metal and [opens] a new way to hedge,” analysts at GoldCore said in a note Monday.

And the also move comes amid a “push by Chinese authorities for a more international role for its currency and as an alternate reserve currency to the embattled dollar and euro,” they said.

In that sense, the launch of the contracts is “really less a development for gold than another step in the yuan’s internationalization,” said Adrian Ash, head of research at BullionVault.com.

At last check, a dollar USDCNY bought 6.37 yuan, down 0.1% from Friday.

–Myra Saefong

http://blogs.marketwatch.com/thetell/2011/10/17/chinese-currency-gold-trading-a-step-toward-the-yuan%E2%80%99s-%E2%80%98internationalization%E2%80%99/

tamo42

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Anybody want to do the math on converting the settlement price to $/ozt?

Offline Grip

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Anybody want to do the math on converting the settlement price to $/ozt?
Pricing paper is a moving target that is transitional. Looks like a first step to de-peg from the USD and vie as a reserve currency. China still needs to accumulate more reserve gold holdings. Starting in May 2012, China will have it's own full blown Gold exchange that can fix prices in USD at the close (an eastern fix that will heavily influence the open in the west). Hopefully, they will also start a silver exchange price fix. It's way past time for Comex/LBMA to not be the only pricing czars.  

Offline ghostrider80811

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Pricing paper is a moving target that is transitional. Looks like a first step to de-peg from the USD and vie as a reserve currency. China still needs to accumulate more reserve gold holdings. Starting in May 2012, China will have it's own full blown Gold exchange that can fix prices in USD at the close (an eastern fix that will heavily influence the open in the west). Hopefully, they will also start a silver exchange price fix. It's way past time for Comex/LBMA to not be the only pricing czars.  

I hope CRIMEX/LBMA goes bankrupt.  Anyone knows how one can get in on the action?  Im assuming we would get paid back in yuan/RMB, correct?  Also, is this investment limited to just Chinese/HK/Singapore citizens?  I would hope not...