Tuesday, September 24, 2013

Singapore Pushing To Become Asian Gold Hub

The wealthy Asian city state of Singapore which has become one of the world’s most important financial centres in recent years continues its push towards making Singapore a global gold hub to rival New York and London.

Singapore has been trying to persuade Thailand's top five gold traders to establish footholds in the city-state as it aims to become a centre for gold price referencing in Southeast Asia before the ASEAN Economic Community (AEC) takes shape in 2015, according to the The Nation.

It reports that the Singaporean government dispatched a team to Thailand to offer relaxed regulations and tax incentives to traders who open offices in that country. It wants to become a reference centre for global gold prices....

The very negative treatment of gold by the government in India is encouraging companies involved in offering gold and gold related investments in India, to consider moving to Singapore.

In October 2012, in a shrewd move, the Singapore government removed a sales tax on gold and silver. Already, there are significant flows of gold into the city state as wealthy investors, ultra high and high net worth individuals and family offices are opting for Singapore as a safe location for gold storage.

Excerpt from Original Article

Saturday, September 14, 2013

Is China Seeking to Replace the World Currency with Yuan?

China has been buying and hoarding gold like a hungry dragon. Perhaps it is taking a leap forward to control the world currency and to replace it with the Chinese yuan, said Dr. Thorsten Pattberg, the China expert at the Peking University.

China is vowing to make more reforms, among them cutting red tape and establishing the yuan as a world currency. The 7th Annual Meeting of the New Champions is opening in the Chinese city of Dalian, the gathering has become known as a ‘summer Davos’. RT has talked to Dr. Pattberg about China’s prospects for introducing a new world currency.

Here is an excerpt of the interview on RT.

RT: Do you think when China says it wants to make the yuan a global alternative to the dollar, is there any possibility of that happening at some point?

Thorsten Pattberg: Yes, it’s perfectly reasonable to think that the Chinese want to see their currency become the next world currency, there’s a plan. And of course China at the moment is purchasing more and more gold, this also plays into this. We heard they recently purchased several hundred tons of gold through Hong Kong, the trading hub. And of course if you hoard gold like a dragon, this is a lot about prestige. The mere presence of gold in your country gives rise to even more self-confidence and to this bling-bling sensation that China is really up to something. The mere intention to buy more gold in the future will certainly have an impact on the rise of gold prices in the world. So China is taking a leap forward to control the world currency and to replace it with yuan.

HSBC Global Research Raised 2013 Gold Price Forecast

REUTERS – HSBC Global Research raised its 2013 gold price forecast and said physical demand is becoming a major driver for the yellow metal.

The bank lifted its gold price outlook for this year to $1,446 per ounce from $1,396, and kept its 2014 forecast unchanged at $1,435 an ounce. Spot gold was trading at $1,330.66 at 17:36 GMT on Thursday.

“Physical demand for jewelry, coins, and bars from China, especially, are supportive and becoming a key driver,” HSBC said in a note on Thursday.

The Indian Government's Gold Folly

Article by Alasdair Macleod of GoldMoney.com

"Until recently the Indian government has allowed families to buy imported gold, having repealed the Gold Control Act in 1990. The lesson from this legislation was that it merely drove gold dealing onto the black market, and did nothing to stop individuals getting hold of gold if they wanted to.

However, the Indian government is not fully in favour of free markets and seeks to control many aspects of Indian life, including gold ownership. This is why the State and the financial sector (which is licensed by the State) are now encouraging ordinary people to buy Exchange Traded Funds and e-gold instead of physical bullion.

So what is the government’s real agenda? There are three possible considerations...."

Thursday, September 5, 2013

China Import Gold from Hong Kong Climbed

Gold shipments to China from Hong Kong increased in July as importers took advantage of local prices that were an average 2.1 percent higher than global markets and as mainland investors bought jewelry and coins.
Mainland buyers purchased 129 tons in July, including scrap, compared with 113 tons in June, data from the Hong Kong government showed today...

China’s purchases in July were 70 percent higher than the 75.8 tons in the same month last year, according to the data from the Hong Kong Census and Statistics Department. Mainland China doesn’t publish such data.

Exports of gold to Hong Kong from China were 16 tons in July, according to a separate Statistics Department statement, compared with 11.7 tons in June and 30 tons in July 2012.