Asian market hubs move into gold


Asian Market Hubs Move Into Gold

Demand From Region Is World's Largest but Most Trading Is in West

By Biman Mukherji and Ese Erhereine
The Wall Street Journal
via EIN News, Washington
Sunday, October 12, 2014

Asians buy most of the world's gold, but nearly all of it trades in London. Now, with Western investors souring on the metal, the region is making a bid for some of the action.

Three big financial hubs in Asia are separately launching trading in a gold contract, each backed with physical gold.

If they draw enough investors, the contracts could influence the price of gold, which is set by a daily fix in London. ...

China is now the world's largest producer and consumer of gold, and the biggest importer, as domestic demand has outstripped supply. India also is a major buyer and importer. Two-thirds of global gold purchases come from Asia, the World Gold Council says.

Still, many observers say Asia is likely to find it a hard task to unseat London as the world's center for gold trading. A major reason: China bans the export of gold bullion, arguing its huge domestic production is needed to meet local demand.

That means gold can flow into China when prices there are above those set in London, but cannot move the other way. Beijing's strict controls also limit movement of capital. ...

"The greater prominence of prices out of Asia can only enhance the mix, but I doubt within the next couple of years that it will fundamentally change the way spot prices are derived," says Ross Norman, chief executive officer at Sharps Pixley, a London-based bullion broker. ...

... For the remainder of the report:


Anglo Far-East: Think Outside the Bank

Anglo Far-East is a global market leader and innovator that for more than two decades has provided private purchase, vaulting, security logistics, transport, and liquidation of allocated gold and silver bullion outside of the banking system. AFE clients include individuals, family offices, and institutions like banks and regulated funds.

Here's what one of our generationally wealthy clients has to say about AFE:

To get started, please visit:

Anglo Far-East: Think Outside the Bank

Join GATA here:

New Orleans Investment Conference
Hilton New Orleans Riverside Hotel
New Orleans, Louisiana
Wednesday-Saturday, October 22-25, 2014

Mines and Money London
Business Design Centre
London, England, U.K.
Monday-Friday, December 1-5, 2014

* * *

Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006:

Or by purchasing a colorful GATA T-shirt:

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

To contribute to GATA, please visit: