Tracing The Great Chinese Gold Rush

TRACING THE GREAT CHINESE GOLD RUSH China is taking over the world one gold bar at a time as this new world superpower reacts to years of being on the receiving end of the US dollar and Fed money printing. Learn how in the space of a few decades China has opened up her huge gold market, which is now hungrily devouring the world's physical gold. Shanghai Gold Business Exchange is one of the biggest gold centres in the Far East. 1930s Chiang Kai-Shek begins 12 month expatriation of 2.6 million gold taels to Taiwan, as he cedes the mainland to the victorious 4 tons of gold mined, 1% of what will be Mao Tse-Tung during the civil war. 1948 1949 mined in 63 years' time. 1950 As outlined in 'Managing State stops providing raw materials to gold and silver fabricators. Reclaimed gold and silver jewellery can now be kept in banks. Methods for Bullion' the PBOC introduces measures to control gold and silver under the central government. Private transactions amongst the population are also banned as China heavily restricts 1963 it bullion markets. 1975 14 tons of gold mined, less than 1% of the global total. Meanwhile South Africa produces 53% of total gold mined. China opens a retail market for gold jewellery in first steps to liberalise domestic bullion markets. 1982 China Gold Coin General State Council issued new Corporation starts issuing the gold Panda - which becomes the most recognisable Asian gold coin. regulations that placed the control of all purchasing and distribution of gold and silver under the central government. 1983 State changed the price-fixing method for gold from a state- determined price to a floating one, as another gradual move to more open markets. 100 tons of gold mined, accounting for 6.2% of global production. 1993 1995 Chinese government include the establishment of an open gold market in its five year economic plan, as China openly recognises gold as a strategic market. June: A new weekly quotation system for the gold price is launched, allowing the domestic gold price to be adjusted in accordance with the 2000 2001 international gold price. April: Peoples' Bank of China abolishes the monopoly of the gold market and announces a planning and management system to see it forward. The Shanghai Gold Exchange officially opens. Chairman Wang Zhe says the event represents 'an important breakpoint in the revolution of China's gold system and reflected the great progress being made.' The country's gold price is now fully determined by the open 2002 200 tons of gold mined, China now accounts for over 2003 7% of global gold mined. market. Jinhangja, a spot trading product for private investors, is launched by the Shanghai Gold Exchange and ICBC, China's largest bank. This is evidence of further China's classifies gold as an investment and permits individuals to invest in gold and silver, as the emerged nation seeks to position its citizens strongly in growing global currency wars. 2004 evolution in the Chinese gold market. 2005 China becomes the largest gold producing country in the world, producing 270 tons, signalling a new era for the gold market after South Africa's 100 year dominance as top gold producer. China still holds this position today. China Gold Group, supported by the World Gold Council, launches its first two-way trading gold bullion product. The China Gold Investment Bar is 'traded at the prices listed on the SGE with a tight margin 2006 for domestic investors.' 2007 Shanghai Futures Exchange launches their gold future contract, ratified by the Chinese Securities Regulatory Commission, as modernisation of the Chinese 2008 China announces gold reserves have increased by 76% to 1.054 tons as the emerged giant positions herself in the raging currency wars. gold market continues. 2009 Chinese government makes a concerted effort to promote gold ownership. Running programmes and advertisements on China's Central Television to inform individuals how they can buy gold. China mines 300 tons of gold, leaping ahead of other countries and accounting for 11.8% of global mine production. ICBC, China's largest bank, launches Gold Accumulation plan showing grow in retail products in Chinese gold market. Twelfth Five-Year plan (2011 - 2015) produced, urging on-going development of gold market both domestically and abroad and showing 2010 "Guiding opinions on promoting the development of the gold market" report released. Co-authored by several institutions including the People's Bank of China, The Shanghai Gold Exchange, Shanghai Futures Exchange whilst commercial banks are asked to be actively engaged in developing China's national gold market. Bullion producers are targeted for strategic assistance, as China re-affirms her strategic interest in gold. January: ICBC announce over 1 million gold savings 2011 accounts have been opened in the last year. 14.4 million gold futures with banks instructed to offer contracts are traded on finance for overseas gold mine purchases and innovation. the Shanghai Futures Exchange as trading takes off attracting international liquidity. January: National Development and Reform Commission releases The 2012 Development of Shanghai as Financial Centre in the Period of the 12th China becomes the world's fastest growing-market for gold jewellery Five-Year plan. Target is set to maintain the number one world ranking in gold trading. 400 tons of gold mined, the country SGE becomes the biggest physical gold exchange in the world signalling the rise of China as a gold market leader. now accounts for nearly 14% of gold mine production. Acquisitions by China's gold mining companies reaches $1.96 billion as the Chinese seek to guarantee future gold supply outside of their borders. June: Hong Kong Exchange makes a $2.15 billion bid for the London Metal Exchange. August: Shanghai Gold Exchange and Foreign Exchange Centre modernises sector further by launching interbank OTC gold trading. 4.5million accounts now opened as part of ICBC's Gold Accumulation Plan since launch, with 15 tonnes of gold bullion accumulated by these investors in last 6 months. June: China Gold Association estimates private gold holdings to be 5g per capita, citing 'huge potential' for future growth in gold ownership. 2013 April: In third week of monthly trading gold delivery on the SGE reaches 117 tons, 30 tons more than was bought in 2012 by Western banks. June: First six months of the year saw the Shanghai Gold Exchange supply a staggering 1,098 tonnes into domestic market, representing >25% of global gold supply and 94% more than in 2012. July: A change in China's gold buying habits is noted by the WGC who state that individual July: China's first two gold-backed ETFS are launched signalling further maturing of China's gold investment products. investors are opportunistically buying gold when the price is low. August: Acquisitions by China's gold mining companies reaches $2.24 billion as China's global grab for gold mining assets continues. Gold mine output expected to rise 10% to 440 tons. Domestic demand estimated to be 4 tons per day as China continues course to replace India as the world's largest gold buyer. THE REAL ASSET CO © 2013 H IN GOLD WE TRUST