By: Mike Hammer
We talk a lot about China’s gold market. Partly because of its sheer size; the country was the world’s largest in terms of gold mining in 2017, after all. But mostly because of the effects that Chinese gold markets have on the rest of the world. Among other things that impact our gold news, China is famous for not allowing the export of gold, and for its widely varying regulations on the gold market itself. Fairly recent changes – including futures contracts on the Shanghai exchange in 2008 – have led to huge increases in market volume.
But there is still a long way to go for making Chinese markets as clear and transparent as investors would like. Late last week, the World Gold Council released a paper titled “Recommendations for the further development of China’s Gold Market”, a rather boring academic title for an extremely important and potentially exciting change. The WGC – probably due in part to being comprised of individuals and companies operating in more capitalistic markets – is advocating for more open monitoring and reporting of Chinese gold markets, among other changes.
That would be welcome news for many gold enthusiasts around the world, including the author of the blog you’re reading right now. The report is a bit dry at times, but it is mercifully short, and gives a great overview of the recent history of Chinese gold markets along with a level-headed approach to what could be a much better future. Fingers crossed that powers-that-be will listen and move in positive directions.
You can find the paper here; it requires a login but you can use one of several common social media logins, should you already have any of those. This Gold Enthusiast would love to see more transparency on China’s central bank gold holdings, which is beyond the scope of the paper – but hey, one step at a time, right?