The Pan Asian Gold Exchange, due to open in June next year (2012), is part of a Chinese governments 5 year strategy to dominate the gold global market.
Centered in Kunming City, Yunman Province, considered the gateway to all of Southeast Asia, the gold exchange will provide a means for Chinese to buy and sell gold futures with an account at a bank or broker.
Pan Asian will allow Chinese to speculate in gold futures contracts or buy physical gold through an account with a bank or broker. If you think this is small potatoes keep in mind that the Agricultural Bank of China has 320 million customers all of which will be able to speculate on the gold futures market.
With this sort of influence the spot price of gold could easily be controlled from Kunming City instead of London or New York.
As from June 2012, anyone will also be able to buy spot gold or gold futures contracts in China making the Chinese currency one of the most dominant and speculative currencies on the world market.
In addition, the Asian culture sees gold in a different way to western culture. With a potential 320 million people in that culture buying gold on the futures market, this is bound to affect the gold futures market in ways never experienced before. Short sellers may be a thing of the past and the true value of gold is likely to spring to the fore.
Now is, indeed a good time to buy gold.
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