Gary North has an article on this on his site this morning. He says it is big news for gold investing. http://www.jsmineset.com/2011/09/08/market-commentary-from-monty-guild-101/print Anyone here an expert enough to know if this is significant news?
The new exchange increases the demand for gold without increasing the supply, so it should have a positive effect on gold prices over time. How much is anyone's guess. China seems to be trying to increase the amount of gold they own and can lay their hands on in a pinch, so there is probably a political/economic motive as well. The idea that China intends to launch a gold-backed currency seems pretty farfetched to me. They are fiat lovers just as all central bankers are.
