PAGE - Pan Asian Gold Exchange

pmbug

pmbug

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This exchange is offering a new international-facing allocated ‘Spot’ Gold and Silver contract, with an 8am Beijing-time ‘fix’. The fix will only involve Chinese Banks; indeed the owners and members of the exchange are in no way related to the western banks that dominate the existing Spot and Futures Precious Metals markets. PAGE is launching in Q4 2011 a new Spot Precious Metals contract to challenge the emaciated LBMA ‘loco London’ system. International investors will now be able to buy allocated and, crucially, Rmb-denominated ‘Spot’ Gold and Silver contracts. The importance of this cannot be overstated. The Renminbi will be accessible to international investors through this exchange, but in a controlled fashion - using Gold as a synthetic choke on demand for the currency. By buying an Rmb Gold contract on PAGE and selling the equivalent $ denominated contract elsewhere, investors will be left with Rmb exposure. One would imagine that the incentive to own Rmb in the present climate is by inference likely to lead to a whole lot of demand for Gold contracts through this new exchange. Add to that the real demand for allocated Gold that will migrate across from the existing Spot market and you are looking at something that looks sure to have major implications for the Precious Metals market.

Historically the emergence of new Gold and Silver exchanges is met with a collective yawn. The reason for this is that there has never before been any expectation that new exchanges could/would affect the price discovery mechanism. Each new exchange was effectively an extension of the status quo. The mainstream has become dissociated with regard to this issue of price discovery. Many assume that Precious Metals prices are discovered in the healthy way one would normally expect - the body of the market being the 'real' Spot market, where the forces of supply and demand meet, with a small tail wagging merrily away in the form of a futures market (see the Jack Russell illustration). In Gold and Silver the size of the Spot market is ten or more times that of the futures market, so the use of a dog as an analogy holds up in scale terms. The current price discovery mechanism, however, as expressed by my Basset Hound illustration, works instead as follows:

The body of the dog (the Spot market) has become the plaything of its ‘tail’. Rather than the dog wagging its tail, the dog is being wagged BY the tail. This is achievable because the actors wagging the dog by its tail are some of the same LBMA (London Bullion Market Association) members that effectively make up the body of the dog. The LBMA system (aka ‘loco London’) has held sway beyond living memory and countless nations rely on the system for both price discovery and storage/custody. This system has not only allowed itself to be corrupted by fractionalisation, it is clear that the body of the dog actually welcomes being wagged, for fear of the repercussions of being caught short were it not! The ‘spot’ dog has been reduced to shell of its former self, so much so that even apologists for the status quo admit that the ‘spot’ market has around 100 paper claims outstanding to each physical bar. At any cost the existing mechanism will resist delivery, which is what makes the recent demand by Hugo Chavez to repatriate Venezuelan Gold reserves so interesting. This move towards delivery by the Venezuela leader plays into the same important dynamic as the Pan Asia Gold Exchange.

My contention is that this new exchange represents a far bigger challenge to the hegemony of the existing bullion banking system and it price discovery mechanism than most realise. Given the choice between being the unallocated and unsecured creditor of a fractionalized LBMA market or holding title to deliverable and allocated bars within the PAGE system I anticipate much of the ‘loco London’ business will migrate east, lured by the twin benefits of certainty of outright ownership and long-awaited international market access to Renminbi.
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http://www.cheviot.co.uk/news/2011/...e-and-hugo-chavez-a-curious-meeting-of-minds/

Interesting times...
 
By buying an Rmb Gold contract on PAGE and selling the equivalent $ denominated contract elsewhere, investors will be left with Rmb exposure.
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Shouldn't it be the opposite? If you buy a gold RMB contracts, you are giving away RMB and taking gold. On the other side, if you short a $ gold contract, you are receiving dollars and selling gold.
 
The Pan Asian Gold Exchange will be a game changer. Currently as explained, the current gold and silver markets are nothing more than futures contracts, with a giant pool of un-allocated gold and silver. Since a futures contract is in representation is based on an underlying asset (physical gold or physical silver in this case), there seems to be a clear disconnect between how these contracts trade vs reality.

On the COMEX, each contract is 5000oz of silver, and each contract of gold is 100oz. The Comex warehouse only has 38,000,000 oz of silver on hand, which is enough to fulfill about 6800 contracts. The average daily volume on silver is anywhere from 50,000-120,000 contracts. When silver "dumped" from 49.63 down to 33, there was a string of 5 days where over with near or above 200,000 contracts, which represents 1,000,000,000,000 oz of silver (1 billion oz)... per day, for five days straight....

Hmm... considering the world annual supply of silver is only ~900million oz a year (including recycled), isn't it strange that a relatively small exchange (compared to the world gold markets) is trading the world's annual silver supply in one day, over and over again?

This new exchange will put an end to the nonsense, and force the massive short position that JP Morgan and HSBC has taken upon itself, in my opinion to defend the perception of the dollar's strength against currency markers, gold and silver.

This same routine happens in gold... and this new exchange will have "titles" that you will have to own when you trade, 1 for 1 allocation, priced in the Chinese currency.

This is China making its move, the implications of this spell the dollar reserve currency will be a thing of history in short order. This will most likely lead us to a point where the solution presented will be a "new global currency."

I'll stop for now... so much on this subject though!

I recommend http://www.tfmetalsreport.com for more information!
 
I can't wait for Q2 of 2012 when this is probably about to show the first sings of it's effect :D
 
If this makes it easier for the average Chinese citizen to purchase gold and silver, as it is my understanding that the Chinese govt. already is pushing for, then th rocket is launching!

What I wonder is how will taking physical delivery from this exchange differ from the process with COMEX?
 
OK, now I understand PAGE.

The investor holds title to a specific amount of gold, but it still leads back to the old goldsmiths game.

If you don't hold the physical metal, then you don't own it.

How do I know this?

I hold paper title to 10 ounces of gold, and a combination of paper and "electronic title" to roughly 3000 ounces of silver, but that metal was confiscated by the FBI on November 14th 2007, and allegedly resides in a warehouse in Texas.

Thus leading to the likely assumption that PAGE will meet a similar fate to the Liberty Dollar.

The banksters will not play fair and they will attack PAGE with all of the fiat force they can muster from thin air.

The fact that PAGE resides in China, and is fully supported by china.gov only presupposes that the attack, and therefore the counter-attack will be much uglier.

Interesting times indeed!
 
Prices should reach those levels BEFORE page comes full swing - short of a systemic deflationary collapse - even in those conditions, this time around, gold/silver may not come down much.

-C- said:
So 2.5k+ oz prices on gold, and 55$+ an oz on silver????
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Seraphim said:
Prices should reach those levels BEFORE page comes full swing - short of a systemic deflationary collapse - even in those conditions, this time around, gold/silver may not come down much.
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Yea I agree. Usually you see a decline in PMs spring/summer but I don't think you'll see much of decline this time around. I don't think a deflationary collapse is possible given the current amount of inflated financial aggregates in the markets and hot bailout money flying around everywhere killing off what little real physical capital that is left.
 
By the time gold hits 2.5K, silver should be much higher then 55$. I surmise that it will be closer to 100$ then 55$ - 80ish.

-C- said:
Yea I agree. Usually you see a decline in PMs spring/summer but I don't think you'll see much of decline this time around. I don't think a deflationary collapse is possible given the current amount of inflated financial aggregates in the markets and hot bailout money flying around everywhere killing off what little real physical capital that is left.
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Gold's crazy little cousin is just finishing his morning coffee. Just you wait ;).

Patience will be the key for all silver investors. Core of steel + Zen like patience = Bi-winning.

The strong longs on silver will do VERY well. I am not saying that because I am a silver investor. I am a silver investor because I see that coming in a big way.

-C- said:
Thats a big spike, but I can definitely see it happening.
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Bad news for PAGE, seems like an American bank with a 25% stake in the exchange is sabotaging the effort to get a 1:1 backed spot contract.
That's why some people are spinning this project off and are realizing it under an anonymus name. They fear another attempt to undermine the goal of a 1:1 backed contract.
Andrew Macguire and Ned Naylor-Leyland are on board, the following PDF is a MUST READ:
http://www.gata.org/files/PAGESquashed.pdf
 
Whistleblower Maguire - US Entity Interferes in Gold Market
This morning, in an exclusive interview, London whistleblower Andrew Maguire told King World News that the launch of a physical gold and silver exchange in China was interfered with and subsequently killed by a New York based entity with very powerful Chinese connections. Maguire also said Wednesday’s smash in gold and silver was blatant manipulation. Here is what Maguire had to say about the situation: “Well, Eric, it couldn’t have been more blatant (intervention in the gold market) could it? Talk about not worrying about hiding your footprints. This was obviously sanctioned somewhere at a higher level because the amounts of contracts, paper contracts that hit the market, all at once, within seconds of each other, this was not normal trading.”
Andrew Maguire continues:
“This (manipulation) was 100% to protect resistance levels that were about to be breached. However, I don’t think for a minute this has fooled anybody. Anyone in the physical market was waiting for something like this. You only have to have enough of the weak money in there and sure enough they will flush it out.
They (commercials) have been meeting these guys (futures buyers) head on, one for one, short for long, for the last couple of weeks. We’ve been seeing it build up and all they (commercials) have done is cash it in....
“We were seeing massive order flows. We were seeing every single bid being hit. The offers were just massive. I mean we were seeing 10’s and 20 thousand contracts at a time being unloaded by single individuals.
This would be the agents that control the markets. I don’t believe for a minute it was genuine selling. This was 100% paper orchestrated selling and it had nothing to do with the physical market whatsoever. They came in with massive sell orders, creating absolute panic in the marketplace.”
Maguire added some breaking news for KWN readers and listeners: “I’d like to briefly remind King World News listeners just what PAGE (the Pan Asian Gold Exchange) was going to be. This was going to be a Chinese Exchange that was to completely change the way gold and silver trade globally.
If you recall from our previous interview, it posed an immediate threat to the current fractional reserve bullion banking system. It was the competition of a brand new fully allocated gold and silver contract being pitched up against unbacked paper contracts. It’s not a stretch to imagine what a threat these contracts posed to the bullion banks.
The whole thing was killed and we recently found out how PAGE was interfered with. Within hours of our King World News interview last July, I mean you sure get some hits on your show, Eric, the interference stemmed out of a New York based entity with very strong Chinese relationships. It delayed it enough to kill it and it was killed.
China has recently been taking back control of all of the regional gold exchanges. But it’s more of a bullish thing that’s happening here. I think the Chinese are actually formalizing a proper RMB/Gold relationship, once the new government is in place.
I want to get to the good news. The original people behind the international PAGE contract, they stepped aside from PAGE when it ran into this interference (from the New York based entity). They moved to set up their own dedicated international exchange.
It’s been in the works, quietly, for many months now and we will soon be able to announce the first official trading day. This is a game changer, Eric. There are just two of these bullion banks that control almost 95% of all precious metals derivatives, so you can only imagine how welcome this new competition is going to be.
Now the LBMA and the COMEX based bullion banks, they are already defending what is really a growing and unsustainable underwater naked short position in gold and silver. That’s why we see the kind of antics we saw on Wednesday.
So things are about to change, Eric. This new competition will give naked short holders a heck of a lot to think about. This is a bombshell.”
Click to expand...
http://kingworldnews.com/kingworldn...re_-_US_Entity_Interferes_in_Gold_Market.html
 
This is big news. Hope the silver exchange doesn't get sabotaged too.
 
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