I don’t think so. Here again, most analysts got the Shanghai Gold Exchange (SGE) completely wrong.
The SGE was established in October 2002 by China’s central bank, the People’s Bank of China (“PBOC”) upon approval by State Council and supervised by PBOC.
Officially and fully open for business in September 2014, I personally was the first foreigner to visit the SGE in October 2004 and spoke with the president. Construction was underway, communications, quote pits for the different products and more. It was an interesting visit, under armed guard.
But for the record, let me explain the myth that the SGE is going to boost gold demand and send it to the moon.
The chief reason for the SGE is to officially allow two
types of cross-border trade in gold in China:
To promote general trade and processing trade.
In a nutshell, that means the gold is not brought in to the SGE for investment …