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Chinese investors join gold rush for haven after Brexit turmoil
From Bloomberg News
Tuesday, June 28, 2016
Chinese investors are rushing to gold as a haven after the U.K.'s vote to quit the European Union.
Turnover in Huaan Yifu Gold ETF, China's top exchange-traded fund backed by bullion, jumped to a record 1.27 billion yuan ($191 million) Friday after Britain's vote, said David Xu, managing director for indexing and quantitative investments division at the Huaan Asset Management Co., the manager of the fund. Outstanding shares of Huaan also reached a record 1.6 billion on June 20, jumping five-fold from the start of the year, he said.
"We saw a record trading of our fund immediately after the Brexit vote as it fueled bets that the global and local economies may suffer," Xu said by phone from Shanghai Monday. Turnover rose as investors expect the U.S. may hold off raising interest rates and Japan, the EU and China may maintain accommodative monetary policy for longer, he added.
China, the biggest gold buyer, is joining a rush for the precious metal after the Brexit referendum disrupted global markets, boosting demand for haven assets. Holdings in bullion ETFs globally surged to the highest level since October 2013, according to data compiled by Bloomberg. Prices gained 25 percent this year. ...
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The Gold Mine Barrick Might Regret Having Sold
K92 Mining is poised for production at its Papua New Guinea gold project and has just listed on the Toronto Venture exchange under the symbol KNT.V.
The gold mining startup came together during one of the toughest periods in mining history.
K92's main asset is the Kainantu project, a large high-grade gold resource with extensive infrastructure including underground mine development, a mill processing facility, a fully permitted tailings pond, and paved roads. The infrastructure means K92 can aim to restart mining in the near term with minimal capital costs and seek to grow through cash-flow funded exploration on the roughly 405-square kilometer property, considered prospective for additional discoveries.
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