Gold News: WGC Releases China Recommendation

We talk a lot about China’s gold market. Partly because of its sheer size; the country was the world’s largest in terms of gold mining in 2017, after all.  But mostly because of the effects that Chinese gold markets have on the rest of the world.  Among other things that impact our gold news, China is famous for not allowing the export of gold, and for its widely varying regulations on the gold market itself.  Fairly recent changes – including futures contracts on the Shanghai exchange in 2008 – have led to huge increases in market volume. 

But there is still a long way to go for making Chinese markets as clear and transparent as investors would like.  Late last week, the World Gold Council released a paper titled “Recommendations for the further development of China’s Gold Market”, a rather boring academic title for an extremely important and potentially exciting change. The WGC – probably due in part to being comprised of individuals and companies operating in more capitalistic markets – is advocating for more open monitoring and reporting of Chinese gold markets, among other changes.

That would be welcome news for many gold enthusiasts around the world, including the author of the blog you’re reading right now. The report is a bit dry at times, but it is mercifully short, and gives a great overview of the recent history of Chinese gold markets along with a level-headed approach to what could be a much better future.  Fingers crossed that powers-that-be will listen and move in positive directions.

You can find the paper here; it requires a login but you can use one of several common social media logins, should you already have any of those.  This Gold Enthusiast would love to see more transparency on China’s central bank gold holdings, which is beyond the scope of the paper – but hey, one step at a time, right?

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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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