China Creates Gold Investment Fund For Central Banks
By: GoldCore
GoldSeek.com
Monday, 25 May 2015
– China’s new gold fund – 60 countries to develop gold mining projects
– Allow member central banks to have easier access to gold
– Gold to be traded on increasingly important Shanghai Gold Exchange
– Another important step in making yuan reserve currency
– China and Russia challenging U.S. dominance in key Eurasia
– New gold fund shows monetary importance placed on gold by China
– China ensuring supply in event gold flows from West to East end
– Gold’s reemergence as important monetary asset both for individuals and powerful nations
China has announced the establishment of a new international gold fund with over 60 countries as members. The large fund, which expects to raise 100 billion yuan or $16 billion, will develop gold mining projects across the economic region known as the New Silk Road.
President Xi Jinping said earlier this year he hoped annual trade with the countries involved in the increasingly important modern Silk Road would surpass $2.5 trillion in a decade.
According to Xinhua, the official Chinese news agency, the project will facilitate the central banks of member states to acquire gold for their reserves more easily. This may explain the broad support which the project has received in the area.
“About 60 countries have invested in the fund, which will in turn facilitate gold purchase for the central banks of member states to increase their holdings of the precious metal, according to the SGE.”
The project is being overseen by the Shanghai Gold Exchange (SGE) and it is likely that the newly mined gold will be either be traded on the SGE or be sold directly to the PBOC and other central banks.
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