Shanghai settles 96% of gold trades in physical metal
By GCRU Gold News on Friday, July 1 2016, 23:03 - Permalink
In The China Syndrome article series, I emphasize the physical nature of settlements on the Shanghai Gold Exchange as a requirement that will have significant impact on the gold market in the years to come. This quote from Jiao Jinpu verifies the strict application of physical settlement. Over 96% of the volume on the SGE is settled in physical metal. Speculation on the price sans delivery, which drives activity on New York's COMEX, is discouraged on the SGE.
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