The Chinese gold fund can jack up gold prices


China never ceases to amaze the world with its innovations. This time in the limelight is the new fund entitled the “Silk Road Gold Fund”. What is so special about this fund and how will it impact the world gold market?

Read the Global InterGold article and find out the peculiar turning-points of the world of gold!

While the gold market is anticipating the moment when China publishes the data about the quantity of its gold reserves, the Asian Giant amazes the gold market once more with the establishment of a fund which could become a common space where the countries will be able to integrate their gold resources. According to the analysts the fund will have a positive impact on the trade in the gold market.

The idea of the innovation belongs to the Shanghai Gold Exchange and major stakeholders are two large gold corporations: Shaanxi and Shandong Gold Groups. Apart from this, it is planned to set up additional funds focused on investment, transportation etc.

Owing to the setting up of the gold fund, the Chinese government plans to strengthen the significance of the national currency in terms of gold pricing. It is worth mentioning that the trade in China's gold market is realized with physical gold while Western platforms use paper gold.

The new fund will serve to invest in gold production in the countries located nearby the Silk Road. This contributes to the exploration in Afganistan, Kazakhstan and other countries.

The setting up of the Gold fund is a key to high gold prices

There is one interesting moment that is China has the possibility to gain profit out of its innovation even in case gold is artificially underpriced. The gold fund can buy yellow metal at low prices until the gold market experiences the surplus of physical gold, which will make the arificial underpricing problematic.

What will come next and what surprises can be expected from China? Follow the updates together with Global InterGold! 

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