In my last outing I covered these questions; I still wonder about them as we wait for the next round of information.
What do you expect over the next 6 months?
What do you think the Value is now?
When will Flakers catch on?
I also spoke about the splintering USD, sovereign leverage, Sri Lanka, the new maritime silk road, the gold pressure against the USD, China, Graphene and the FED. In this Part 2, I will endeavor to add some details and examples from current events as well as historical examples.
Gold is a larger macro-economic pressure against the banks and Petro-dollar. As the nations around the world hoard their gold and strategic materials and trade; each is a direct blow against the USD. America's debt rose a trillion this year and most people look at their debt and promises to be around 240 trillion. If a economist tell you this is manageable then you know on whose pay role they are.
The BRIC's are the gold centers of the world now and they are all building their alliances for security and trade and Sri Lanka is a critical key position on the global chess board. America cannot make up ridiculous sanctions against Sri Lanka like they are with Russia, there best play is using proxy's like Australia to get balance in Sri Lankan trade.
The Global investor class is already leaving the USD and are setting up shop in Asia.
Just as Afghanistan was part of the center of the global chess board and the British and America was massing troops on its borders before 911. An easy fact to confirm. America is moving its navy into Asia, much to everyone fear. America wants to cut Russia off and create war...
General Wesley Clark: Wars Were Planned - Seven Countries In Five Years
All this war in the world is manifestations of the global financial war and Sri Lanka is a vital pivot point for trade and its special resource. So while Asia's buying up gold like crazy right now they are also looking towards Vein Graphite because those who have ti will have a technology leg up this century.
Big companies don't care about there host nations and will abandon the USD in a heart beat.
Not all Small Caps are created equal. I am sure the MRF balance sheet is being passed around in Singapore and Thailand and other places you would not expect. Singapore can off allot to Sri Lanka as trading Brothers with Singapore helping Sri Lanka open up their ports, systems and cities.
I have said more then once that the history of Singapore has many lessons for Sri Lanka over the next few years. The difference being Singapore did not have as high a Sovereign Leverage!
“I Want To Be Diversified, I Want To Own Some Gold” - Faber
Singapore continues its push to be a global gold hub. Further details emerged at the weekend about the planned launch by Singapore of a new 1kg physically deliverable gold contract for the Asian wholesale gold market.
This new gold contract differs from others in that as well as acting as a price discovery benchmark for 1kg gold bars in the Asian region, it has been specifically designed to actually deliver gold to wholesalers, because settlement of the contract is in gold 1kg bars and not in cash. A 1kg gold bar is 32.15 troy ounces.
In June the Singapore Exchange (SGX) indicated that their 1kg gold contract would probably be launched by September, but the launch date has now been pushed back to either October or November. The SGX is Singapore’s securities and derivatives exchange and clearing and depository provider.
The Singapore contract will be in lots of 25 kgs, denominated in US dollars, and it will trade for three hours in the Singapore morning time. Singapore is 7 hours ahead of London and 12 hours ahead of New York, and 2.5 hours ahead of the Indian market, but is in the same time zone as both Hong Kong and Shanghai.
Six consecutive daily contracts will trade at the same time, so when one contract expires, another will be added. Physical settlement is two days after trade date and consists of 99.99 purity 1kg gold bars that meet the approval of the Singapore Bullion Market Association (SBMA) good delivery list . This means that wholesalers will be able to gauge demand and supply of 1kg bars over the following week.
At a gold conference in Pune, India this weekend, the SGX clarified the new launch date and pointed out how the new 1kg contract could benefit the physical Indian gold market.
At the conference, Derek Neo of the SGX said that the 1kg gold contract will “benefit Indian traders as they will be able to see the price trend of gold kilobar when the Singapore market for gold closes at 11.30 a.m” (9am Indian time), and that since India is one of the world’s largest importers of gold, “the contract is going to provide another avenue to source quality gold”.
The SGX is exclusively using the vaults of Brinks Singapore as the official vault for the contract’s 1kg gold bars. In Singapore, Brinks have a vaulting facility in the free port of Singapore.
Four international banks that are members of the SBMA will act as market makers for the new gold contract and these banks need to guarantee availability of 1 kg gold bars in order to provide the liquidity to allow the new contract to work as designed. These banks are JP Morgan, the Bank of Nova Scotia, Standard Chartered Bank, and Standard Bank.
Since the SGX 1kg gold contract is traded on the Exchange and is regulated, it will be interesting to see the published trading statistics from the Exchange once the gold contract product is up and running and the volume of 1kg bars that these four bullion banks are providing to the Brinks vault in Singapore.
Hong Kong Gold Hub
The US based CME Group who run the Comex gold futures exchange in New York and also host the new LBMA Silver Price auction in London have also announced plans for a new 1kg gold product in Hong Kong.
The CME’s new Hong Kong 1kg product is a US dollar denominated gold futures contract. It will trade on the Comex in New York and not in Hong Kong, but it will be settled and deliverable in Hong Kong at exchange-approved vaults. This is significantly different to the SGX physically deliverable 1kg gold contract in Singapore.
There are still not many details released about the CME’s Hong Kong gold futures contract, but it will primarily be a cash settled contract for 99.99% fine 1kg gold bars, and is designed for global market participants who want to arbitrage and hedge risk between the New York or London gold prices and the Hong Kong regional price.
Last Thursday, the CME announced that three vault providers have applied to be approved vaults for the gold kilo contract. These are Via Mat Management AG, Brinks Global Services USA, and HKIA Precious Metals Depository Ltd.
Via Mat, Brinks and HKIA all have vaulting facilities in Hong Kong, and GoldCore exclusively uses Via Mat for its Secure Gold Storage service in Hong Kong.
The contract specifications, such as contract size and trading hours have not yet been released but it’s thought that the CME’s Hong Kong contract will be structured similarly to the CME’s existing 100-ounce COMEX gold futures contract that trades in New York.
MARKET UPDATE
Today’s AM fix was USD 1,234.75, EUR 955.62 and GBP 759.43 per ounce.
Friday’s AM fix was USD 1,237.25, EUR 957.11 and GBP 760.87 per ounce.
Gold in USD - 5 Years (Thomson Reuters)
Gold fell $11.40 or 0.92% to $1,230.70 per ounce and silver slid $0.06 or 0.32% to $18.65 per ounce on Friday. Last week, gold and silver were both down 3% and 2.86%.
Gold recovered from Friday’s low in Asian trading this morning, ending in Singapore near $1233, before continuing the recovery in London trading. Silver is trading in London at $18.58, essentially unchanged from Friday’s New York close.
Precious metal trading will this week be predominantly affected by the upcoming US Fed FOMC meeting scheduled for tomorrow and Wednesday.
The Platinum price has recovered slightly today, rising 0.51% to $1371. Palladium is also stronger, up 1.93% at $845."
Vein Graphite from Sri Lanka is more important then Gold; just watch as news about Sri Lanka and Vein Graphite swirls around the news outlets. I predict Russia may be visiting Sri Lanka next as well as Brazil !!!
Sri Lanka is a Pivot point in world history for the BRIC's. Australia is well positioned and our companies can get some lucrative deals if they are quick. China, Japan, India, Russia and all the other sensible nations know Sri Lanka is the new Singapore. Hong Kong and Singapore can be very powerful influences on Sri Lanka right now. Sri Lanka has needs right now, especially advice and training in areas we excel here in Australia. I am not surprised our police are training and helping them! I am not surprised we have conferences with them helping them here in Australia.
Japan has just made successful plays in 5 major areas for Sri Lanka, maybe topping what even China can offer. We offer, schools, skilled training, policing, navy protection, advice on many industries like sustainable fishing and tourism. We can help them clean up corruption and bring our legal expertise to their many tensions and corporate system.
MRF got this new deal because of many reasons but a big one not spoken about is Aussies have the credibility and trust. We haven't played into the UN/US games and because of that we are guiding them in friendship. By respecting their nationhood they are willing to listen to us and receive training from us, more so then China. I think I called it here on HC that we can offer police training and now it is in the papers, not bad I think for a logical guess.
So what will China be offering Sri Lanka with their PM visit?
Chinese companies are going to receive tax benefits for setting up shop in Sri Lanka!
Will Putin be making a visit to Sri Lanka?
Sri Lanka needs help we can provide, will we win this massive trade bidding war over Sri Lanka and ultimately its strategic material?
MRF is an obvious company for people in Hong Kong or Singapore to discuss or the Global investor class to mention in one of their conferences say in Brazil or India? MRF to be honest barely needs Australian investment. Asian are already investing billions in Graphene research doubling EU or other investment. Japan is the tech hub of the world and is scrambling to be the most dominant in Graphene chips although IBM might be beating them right now. Not sure?
What do you think?
Kind Regards
PS - Mistakes are easy! DYOR !!!
MRF Price at posting:
9.3¢ Sentiment: Buy Disclosure: Held
