The Pan Asian Gold Exchange

Uploaded by GoldMoneyNews on 30 Aug 2011

The Pan Asian exchange is a formal central government backed project which is now open to international investors. The exchange is fully owned by the Chinese government. Up until recently it has remained under the radar of the average gold investors as it has not been covered by western media. The internet is a better source for information on this new exchange. However, the crux of the whole picture is not being covered as it should be.

This international facing spot contract will affect the price discovery mechanism for gold as it enables widespread access to a 1 for 1 allocated 90 day spot rolling contract, denominated in Renminbi. This will give investors real title as opposed to having the conventional unsecured creditor status with a bullion bank through the LBMA system. This is a challenge to the current monopoly as investors will be able to escape the turbulent and inefficient gold spot investment arena.

The same applies to the silver spot market where the price is currently inhibited by the downward pressures that are intrinsically imposed. The Pan Asian exchange will eventually lift the short-based bias as the inevitable movement toward “going long” will ensue.