Gold News: Russia, China Plan New Gold Exchange

Seems anything relating to Russia is headline #1 in the news these days – will it ever get old? And be sure, gold news is no exception to this. About 10 days ago, Russia held their annual Russian Bullion Market conference. The big story was an announcement by a top Russian finance official about discussions to set up a long-planned (or long-threatened) gold trading market between the BRICS countries.

Presumably, the purpose of this would be to allow Russia, China, India et al to trade gold between themselves without having to involve meddlesome Western governments like the US or EU. This is actually very important, as two of these countries (Russia and China) are the world’s two largest consumers of gold right now. Also, 3 of these countries are among the world’s biggest producers of gold (China, Russia, and South Africa).

You’d think this plan would take volume off the established London, Singapore and New York exchanges. What would the effect be on gold prices and trends?  We can’t really be sure yet, but this Gold Enthusiast thinks it might help reveal any possible market manipulation attempts in the London and New York markets.  You can read more about it here.

 Related: Here’s Why Gold Prices Are Stuck in a Rut

About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as a continuing theme. Mike graduated from UC Berkeley with a business degree, then worked with Macy's in their operations arm. He left Macy's and spent a summer trading his own account, which taught him a lot about trading in general and markets in particular. Trading through the Black Monday and the Crash of 1987 showed him how most people are unprepared for upheavals in their trading. He then joined Waddell & Reed as a financial advisor, helping regular people understand their finances and meet their life goals.

Then came the usual story - Mike met and married the lady of his dreams. They moved to upstate New York, where Mike worked first for a small manufacturing consulting company, then Cornell University. While loving the work and the higher-education atmosphere, Mike missed the world of finance. Eventually, he signed up for stock trading coaching with the Adam Mesh Trading Group, to learn from people who understood modern markets. Within a year, Adam asked Mike to become a stock trading coach.

Since then, Mike has trained over 200 individuals, spoke at several national conventions, and is a frequent contributor to conference calls across the Adam Mesh community. Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keep him in touch with "the student mindset". Mike closely follows the gold, energy, and financial sectors. His motto is "Plan your trade, then trade your plan!"

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