Tin Foil Hats, Economic Reality and the Total Perspective Vortex

Welcome to the Precious Metals Bug Forums

Welcome to the PMBug forums - a community supported watering hole for folks interested in gold, silver, precious metals, sound money, investing, market and economic news, central bank monetary policies, politics and more.

Register a free account to join the discussions. When you register an account and log in, you may enjoy additional benefits including access to market data/charts and additional members only rooms (including one for trade/barter with the community).

No matter an asserted gold backing, no one is going to accept a World Reserve Currency issued by a government that is opaque, both in holdings and in operations, and has a 75-year history of totalitarian behavior.

The same things now threatening the dollar as the world's reserve currency, work against China's two currencies. As the US slides into control by unseen oligarchs, with increasingly illogical, irresponsible decisions and actions...China, while behaving rationally at present, has not proven trustworthy.
 
SCMP

Hong Kong touts key advantages over London in bid to become global gold hub​

Financial services minister Christopher Hui says government backing, integrated settlement and Shanghai ties will distinguish city's gold trading ecosystem

Distinctive features will set Hong Kong apart from London, a major bullion hub, as the city accelerates efforts to develop an international gold and precious metals trading ecosystem covering the entire value chain, a minister has told the South China Morning Post.

In an exclusive interview on Thursday, Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said the city would officially launch a central gold clearing platform in the first quarter of next year. It would handle both physical delivery and payments, with the latter linked to the real-time gross settlement system.

More:

https://www.msn.com/en-xl/money/inv...-global-gold-hub/ar-AA2epY8U?ocid=socialshare
 
China has STABILITY. At least for the moment.

That is something London does NOT have.

Money doesn't like chaos. Otherwise, the Financial industry would have a heavy African presence.
 
searcher said:
Hong Kong touts key advantages over London in bid to become global gold hub
Click to expand...

Related:
Hong Kong is moving at “Hong Kong speed” to build a full gold and commodities ecosystem while advancing the yuan, according to Treasury Secretary Christopher Hui in a new SCMP interview after the LBMA conference in Italy.
Key points:

⭕️ Central gold clearing system (currently in pilot) launches formally in Q1 2027. It supports true DVP — physical delivery + cash settlement linked to RTGS — something London doesn’t currently offer in the same integrated way.

⭕️ Direct “Delivery Connect” collaboration with the Shanghai Gold Exchange, with settlement facilities for both markets based in Hong Kong.

⭕️ RMB gold futures details to be announced by HKEX before end-2026.

⭕️Storage capacity targeted to exceed 2,000 tonnes within three years (government + private sector), plus more refining capacity coming onshore.

⭕️ From the Oct 2024 Policy Address announcement to full clearing implementation in roughly 15 months — cited as concrete “Hong Kong speed.” Positive feedback from industry participants at LBMA on the timetable and readiness.

⭕️LBMA Asia Forum coming to Hong Kong in April 2027, by which time the clearing house should be live.

⭕️On the yuan: Hui framed it as serving the real economy, not just financialization. Asian economies (ASEAN is already HK’s second-largest trading partner) are trading more among themselves, and the RMB’s lower interest rates vs the USD make it increasingly practical for trade settlement and financing. Hong Kong remains the largest offshore RMB hub. Retail e-CNY acceptance among local merchants is also growing, helped by deeper integration with the mainland.

🎯Overall pitch: Asia-time-zone venue that combines trading, storage, clearing, refining, and risk management under one ecosystem, with government backing and Shanghai connectivity.

🔶DVP (Delivery versus Payment)
A settlement mechanism in which the transfer of an asset (e.g., physical gold or securities) and the corresponding payment occur simultaneously and are conditional on each other. One side only delivers if the other side pays, and vice versa. This eliminates the risk that one party delivers the asset but does not receive payment (or the reverse).

🔶RTGS (Real-Time Gross Settlement)
A payment system in which transfers of funds are settled individually (gross) and immediately (in real time) once the payment is submitted and funds are available, rather than being batched and netted at the end of the day. In Hong Kong’s context, the gold clearing system is being linked to the city’s RTGS system so that cash settlement can happen instantly and irrevocably alongside the physical gold delivery under the DVP process.
Click to expand...

 
You must log in or register to reply here.
Back
Top Bottom