China and the Gold Exchange Market

China is an important player in the world market.  However, China is also one of those countries that have been playing a very negative role in the world.  China has been using gold and their gold exchange market in order to fight against the loop hole of United States’ sanctions in Iran and still transact with Iran.

What, then, happened in the Gold Exchange Market? Positively, China’s claim on gold reserves has played a good role in its country.  According to China Daily, a local newspaper, the interplay of gold market exchange has proved to play a good role in China’s economy.

In order to help trading gold in the Chinese market, there are three factors that have to be played properly for the market to exist in relation to the other markets in China and in the international arena.

First is to establish a deferred delivery service that will provide trust in the players and so that the players will know that they do not need to worry about people scamming them in the gold exchange market.

Second, it is also important for the trade exchange to create gold-related investment products.  This would mean that a new industry of gold will open in China and this will provide a greater means to influence the Chinese to invest in some gold which would help China and its economy.

Finally, it is also important to integrate the exchange into the international markets and open up the gold reserves of not only China but also of other countries.  Of course, this would not necessarily mean that China may be doing some friendly acts towards its neighbors, this only means that they will know which country have more gold reserves and which countries have no way of supporting themselves when gold becomes the new currency of the world.

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