Asian Market Hubs Move Into Gold
By GCRU Gold News on Monday, October 13 2014, 00:02 - Permalink
Asians buy most of the world's gold, but nearly all of it trades in London. Now, with Western investors souring on the metal, the region is making a bid for some of the action. Three big financial hubs in Asia are separately launching trading in a gold contract, each backed with physical gold. If they draw enough investors, the contracts could influence the price of gold, which is set by a daily fix in London.
London has dominated the trade in physical bullion for more than 300 years. Vaults in the city, including one under the Bank of England, house 7,500 tons of gold, according to the London Bullion Market Association.