CHINA TO OPEN PAGE
China needs to free itself of the dollar.
All of its imports are done in dollars, all of its exports are paid for in dollars, and it’s amassed a $3.2 trillion base of foreign exchange reserves. But the dollar is losing value fast and China needs to protect the value of its reserves.
The best way to get rid of the diminishing dollar and replace it with something that actually has value is to buy Gold of course.
In order to do this China needs the Gold price to be stable and to be freely determined by the market and not manipulated by bankers trying to protect the pound and the dollar. It needs to hold real Gold and not ‘Paper Gold’ (‘Paper Gold’ being a contract to sell Gold sometime in the future).
In June 2012 China will open the Pan Asia Gold Exchange (PAGE).
The PAGE market is expected to have a much larger Gold backing and could change the way Gold is traded forever. Its aim is to sell investors real Gold.
Seeking Alpha reports:
“PAGE will for the first time allow individuals to trade futures contracts that are fully backed by Gold. These contracts are not going to be the paper type future contracts that trade on the London and New York Gold exchanges. This single development is a huge game changer; for increasingly investors are turning to Gold due to the uncertain times they find themselves in. Now they won’t have to worry about taking delivery; delivery will be guaranteed.”
The Gold market is heavily manipulated by the Bankers in the West. The launch of PAGE could truly turn out to be a huge game changer and potentially displace London and New York as the premier Gold exchanges in the world. It will create a massive new demand for real Gold. And it could free China of its dependence on the West.
For decades Chinese citizens couldn’t buy Gold under penalty of law. Then in September 2009 China became the only country worldwide actively encouraging Gold ownership by its citizens. PAGE is the next step in this.
According to estimates close to 80% of the world’s annual Gold production would be needed to supply a mere 2% of China’s population with a single Gold contract when PAGE opens up.
The term frontier markets, refers to a subset of emerging markets. These markets are distinguished from emerging markets such as the BRIC nations in that they generally have lower market caps and less liquidity. Many investors look to frontier markets for long term, high yielding returns.
The Euro found solid support on dips during Friday with initial support in the 1.3360 region and there was further strong buying during the day as the currency pushed to fresh 11-week highs against the US dollar.
Most investors have become accustomed to hearing about record breaking gold returns week after week. And we’ve seen the gold price setting new highs, just to watch it tumbling down again. But recently, the dollar gold price seems to be stabilising around $1,700 per ounce.
Nuclear power is a crucial part of China’s energy strategy. China kept on working in full earnest to complete the 11 nuclear plants it was busy constructing before the Fukushima nuclear disaster despite cries from the rest of the world to cut nuclear energy projects. China has expanded its nuclear power construction portfolio to 26 nuclear plants since.
Greece has just had a vote to approve austerity measures. This means that Greece has agreed to cut back on spending and increase taxes to secure itself another bailout of €130 billion. Now this great news should go a long way to getting the euro-region finance ministers to approve the second aid package on the 15th of Feb.
If we are looking at any Swiss currency-based pair that is not EURCHF, we are generally looking at a proxy for the euro. The safe haven attribute of the franc has been unnaturally counteracted by the Swiss National Bank’s (SNB) standing threat to dump its currency on the open market should the 1.2000-floor the authority drew on EURCHF be threatened. Yet, since this benchmark pair is anchored to that closely monitored level, franc crosses end up moving much like euro crosses. In the upcoming European session, the acting central bank President Thomas Jordan is scheduled to speak on the Swiss economy. Of course, FX traders aren’t interest in growth reports.
Most sentiment and volatility readings for the Japanese yen have been as extreme as price itself. And, if conditions are extreme for an extended period of time, they eventually become the norm. Taking the temperature of the market now, the 20-day (one-month) average daily range on USDJPY is just above a recent record low at 43 pips, retail positioning reflects 11.5 longs per each short and risk reversals (one-month, 25-delta) have shown the longest period of more expensive calls than puts on record. Being at an extreme doesn’t always guarantee a reversal or even trend continuity. To wake the market up, we need a catalyst. For a sustained move, a strong return of carry interest would carry the greatest influence, but that is a ways off.
Both risk trends and the greenback were little moved through the opening day of this trading week, yet both nudged out a higher close. Gold would take the hint of a positive risk bearing and healthy alternative benchmark store of wealth to retreat a second day. This was in fact the first back-to-back decline for the precious metal since January 9th and only the second instance since the current bull phase began with the December 29th reversal.
