Gold prices to increase as China launch gold trading on local market

 Sahit Muja: Gold China

Sahit Muja: Gold prices to increase as China launch gold trading on local market
China to start gold trading of precious metals in its local market in order to help China become a "major gold trading center".

China's Shanghai Gold Exchange has released draft rules for such interbank trading, which will include spot, forward and swap contracts for precious metals.

China has introduce a "market maker" system for precious metals trading with transactions done on an over-the-counter basis compared with the exchange-based pricing mechanism .
The move by China will make gold the first commodity to trade on the interbank market.Chinese regulators have said they would gradually open up the country's commodity exchanges to allow foreign investors to trade on gold, copper, aluminum contracts.

Plans for crude oil futures on the Shanghai Futures Exchange are completed and awaiting regulators' approval. The crude oil contract would become the second commodity futures, after gold, to allow foreign investor participation.

China is the world's largest gold consumer and producer, China is planing to become a major global gold trading center on a par with London and New York.

China is also the fifth largest holder of gold reserves in the world after the U.S., Germany, France, Italy. China to aspire to have their currency become the global reserve currency in the long term.

Albanian Minerals expect central and local banks in China to fuel demand for gold.

China is stocking up on gold as it divests itself of its dollar and euro holdings but also is encouraging its increasingly affluent citizens to buy gold.

Albanian Minerals expect China to buying more gold in the future as it attempts to divest $3.2 trillion in reserves and become the global reserve currency in the long term

Albanian Minerals expect that gold prices and demand to increase in Q3 and Q4 of 2012.

Sahit Muja
President and CEO
Albanian Minerals, New York