Chinese Government Leads Crackdown on Gold Exchanges
- Posted on December 27, 2011 at 5:48pm by
Becket Adams
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Governments hate competition; totalitarian governments even more so. Due to record-breaking gold prices this year, hundreds of “unauthorized” gold exchanges occurred in China to capitalize on gold fever. However, China regulators are not happy about the competition.
“No local authority, institution or individual is allowed to set up gold exchanges,” the People’s Bank of China (PBOC), the Ministry of Public Security and other regulators recently announced in a joint statement.
In essence, gold exchanges in China, except for two in Shanghai are to be banned. The joint statement also explained that the Shanghai Gold Exchange and the Shanghai Futures Exchange are sufficient to meet domestic investor demand for spot gold and futures trading.
However, an official at the Beijing Gold Exchange Center told Reuters reporters that the exchange has not received any detailed instructions.
“But the talk of a crackdown has been going on for a while,” he said. “Of course, this affects our business.”
(Related: Which Gold and Silver Stocks Does Dr. Ron Paul Favor?)
Reuters explains:
The PBOC cited lax management, irregular activities and evidence of illegality which were causing risks to emerge, as the reasons for taking the decision. The central bank said it would lead a team to clear up the mess — gold exchanges will be altered or closed, banks will stop providing clearing services to them; and some people will be put under police investigation.
The move serves as a reminder to precious metal investors that gold and silver remain to be a focus in a world of fiat currencies. In addition to tighter gold exchange oversight, China is making agreements to distance itself from the U.S. dollar.
“Japan and China will promote direct trading of yen and yuan without using dollars and will encourage the development of a market for the exchange, to cut costs for companies,” Bloomberg reported earlier this week. ”Japan will also apply to buy Chinese bonds next year, the Japanese government said in a statement.”
[Editor's note: portions of this article originally appeared on Wall St. Cheat Sheet.]
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ILUVJESUS
Posted on December 29, 2011 at 2:16pmNotice how their photos always make it look as if they as so well organized! Communists are more concerned with appearance rather then governing a organized society. The people live in povrty, serving the state as slaves without any freedom. The top party officials live like kings behind closed doors.
Report Post »ILUVJESUS
Posted on December 29, 2011 at 2:18pm….poverty
Report Post »pmjr-jones
Posted on January 3, 2012 at 5:24pmyou have a closed eye to this country
Report Post »BelieveMe
Posted on December 28, 2011 at 7:50pmChinese are brilliant businessmen. They know the Japanese YEN is WORTHLESS. They want to TAKE OVER JAPAN. This story completely misses the objective. Research how close Japan is to total economic collapse. The other problem here is that it only costs China $300 to mine a troy ounce of gold. It costs AMERICA $3,000 to mine a troy ounce of gold. If GOLD continues to rise, China becomes the beneficiary (already has) of billions of $$$$$$$$$$$$$$$$$$$$$$$.
Report Post »1me2ao
Posted on December 28, 2011 at 2:13pmbbb without using dollars bbb
that says it all to those that think the red dragon is peaceful.
Report Post »DSN397
Posted on December 28, 2011 at 9:52amI’m not wearing a tinfoil hat just yet, but I see enemies from within and enemies from without. Japan joining with China to collapse the dollar, sure, but our own government joins with China and for that matter any other country, in any endeavor they begin whether it’s beneficial to the U.S. or not, it doesn’t matter, just let us help.
It’s just like the neardy kid in middle school. He’ll do anything to try and get the the most popular kids, or the kind of popular kids, or the just a little less neardy kids, or even if he has to resorte to it he’ll go for the kids even neardier than himself trying to find acceptance, and after they’ve all used and abused him, and his still doesn’t have their friendship, he’ll become their butt boy and carry out their every whim hoping for a pat on the head or at least a kind look.
This unfortunately is where I see the U.S. going under Obama, and the only other option I see is someone else being elected who just won’t bow under quite as fast, but with what we have to choose from, there is no pull us up and out leader. I‘m glad I’m in my late 60′s.
I can’t imagine living through what a U.S. citizen’s who has been born in say the last 10 years is going to have to endure. If you want a glimpse, look at Russia’s low or middle class, China’s only working class (low), and God forbid any of the Muslim countries poor or middle class citizens.
Ancient Greece fell, anicent Rome fell, I’m afraid they have put us in
Report Post »Al J Zira
Posted on December 28, 2011 at 6:54am“No local authority, institution or individual is allowed to set up gold exchanges,” the People’s Bank of China (PBOC), the Ministry of Public Security and other regulators recently announced in a joint statement.
So the PBOC is the Chinese version of the Fed.
Report Post »turkey13
Posted on December 28, 2011 at 9:48amChina is buying gold and refusing to let any mined from their borders be sold. All mined gold goes to the state. Recently a one kilo – 32 ounce 1992 ( 1 of 12 made) Chinese coin sold for over one million $$$. This story was in coinworld magazine + the story on China hoarding gold.
Report Post »Hollywood
Posted on December 28, 2011 at 2:06pmOOOOHHH GOOD ONE,and how TRUE!
Report Post »asybot12
Posted on December 28, 2011 at 1:52amWhat the real eye opener is the agreements between Japan and China they have been enemies for centuries and although the hoopla about China’s economy is just that HOOPLA that is a significant indicator where the US $ is headed. The Chinese are also aggressively investing in raw resources world wide (Africa especially) I would be way more worried about that. BTW the wealth in China is just like everywhere else I am not sure about the #’s but I bet it is a very low amount of Chinese that own all of the wealth.
Report Post »scrapadapolis
Posted on December 28, 2011 at 12:47amYea everytime I want to buy something I have to die to buy it.The bible is neither fore or against its just a book that contradicts its self.I hate bible thumpers.
Report Post »adamah379
Posted on December 28, 2011 at 1:22amWhat can anyone offer that’s more life altering? ( True, the principles will have to be followed.)
Report Post »IMAWAKENOW
Posted on December 28, 2011 at 1:59amWhat are you doing on this site???
Report Post »adamah379
Posted on December 28, 2011 at 12:30amFolks, here is a thought. ” Do not store your treasures on the earth, where moths and rust destroy and robbers dig through to steal. Instead, store your treasures in heaven where moths and rust do not destroy and where robbers cannot dig through to steal. The place where your treasure is will also be the place where your heart is.” Jesus.
Report Post »Tim Law
Posted on December 28, 2011 at 12:07amHmm looks like big trouble for the dollar. Is the house of cards getting ready to take a tumble?
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