How do The Huge Chinese Bullion Banks Move Gold Prices?
The actions of the bullion banks for the London Gold Market and also the COMEX futures exchange in New York are dissected by analysts looking to explain market movements and trends in gold prices.
Famous names like JPMorgan, HSBC, Scottia Mocatta and Goldman Sachs are monitored closely since the height and width of their trading, by themselves or for their clients, is really large it could move markets.
Older gold investors will remember fondly the 1980s and 1990s bear market well, probably holding a range of opinions about what caused this bear market.
Within these opinions there are a few well-made arguments with the like with the late Ferdinand Lips that two key phenomena regarding the bullion banks a marked influence on weakening prices with this era.
What about the giant Asian bullion banks?
China and Asia’s huge and growing finance industry is now the centerpiece for global minded analysts to look into.
Within this white hot Chinese gold buying market there’s a new variety of Asian bullion bank, trading on exchanges just like the Shanghai Gold Exchange (SGE), growing in size to already rival the likes of JPMorgan.
Comprehensive new information documents the biggest trading bank about the SGE, with many familiar Western names almost managing to keep up a sizable presence there.
However the Chinese banks in this report are worth becoming familiar with, while they will form the core of maybe the most effective and fastest growing range of bullion banks inside market.
Will the Bank of China and China Agricultural Bank become the JPMorgan and HSBC of 2020’s gold market? Those that put money into gold should watch carefully to see.