As the US government continues to ignore gold in favor of debt sprees and geopolitical sparring matches, China continues its definitive progress toward becoming a super power in the gold market.
China has its own significant debt problems to deal with, but their actions make it clear they see the long-term importance of gold, the world’s singular best store of indestructible value. Shoring up their gold trading operations while adding to their sovereign stockpile continues to prepare China to benefit greatly from gold’s return to prominence as currency, while the US simply continues to dilute its currency into oblivion.
Led by China, the global gold market has moved from the West to the East, the CEO of the World Gold Council, Aram Shishmanian, told an industry forum on April 19.
And building on that position, China is assuming leadership in the world of gold, he said at the Global Gold Market Summit 2018 in Xiamen, East China’s Fujian province. “Your leadership, I have no doubt, will determine or help determine the structure and form of the evolving international gold market.”
The summit, the third of its kind, was organized by the Shanghai Gold Exchange (SGE) and the Xiamen Municipal People’s Government and gathered about 700 industry heavyweights and professionals from across the world.
Shishmanian noted that China was small in the gold industry 20 years ago but has gone through “spectacular transformation” — the result of a “very careful and deliberate strategy” supported by the People’s Bank of China (PBOC), the central bank.
At its heart, he said, is the formation of the SGE, combined with a series of liberalization policies and steps that created the conditions necessary for what we see today. Unlike any other country in the world, the...