Shanghai Gold Exchange gets first international market to accept their pricing of gold as China seeks to usurp Comex and London
On June 21 China announced that the Budapest Stock Exchange is expected to begin pricing gold using the futures price determined at the Shanghai Gold Exchange, and will make Hungary the first market outside of China to use a pricing mechanism for the precious metal that is not of either London or the Comex.
This move is the first in China's push to usurp control over the pricing of gold, and is the start of their program to internationalize futures contracts at the world's largest physical gold exchange.
China is looking to expand the use of its yuan-denominated gold fix overseas, the chairman of the mainland China’s sole gold bourse said on Wednesday, reflecting on Beijing’s attempt to vie for a bigger say in the price-setting of the precious metal.
It is now expected that a gold futures contract based on China’s yuan-backed gold benchmark price could be listed on the Budapest Stock Exchange in Hungary as soon as the second half of this year, said Jiao Jinpu, chairman of the Shanghai Gold Exchange (SGE) at the Lujiazui Forum, which ends in Shanghai on Wednesday.
SGE is considered the world’s largest physical bullion exchange.
The yuan-backed benchmark fix, launched by the SGE in April 2016, reflects Beijing’s hopes of reducing its reliance on US-dollar based prices of the metal, he said.
It also reflects Beijing’s latest step to push ahead its plan to make the yuan a global currency, analysts added.
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This is the news we've all been waiting for-- for the SGE to finally start having a noticeable, public presence in the legitimate pricing of PM's. I am eager for this type of influence by the SGE to spread and eventually render the LBMA and COMEX as utterly irrelevant and corrupt.
Wow this is huge lol