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All that glitters is not Gold

Runifyouhaveto

Alfrescian
Loyal
can teach me or explain to me why people say that the china missing-metal scandal in port will cause gold price to go up (but not really, as of now?)

Part 1: Chinese port/warehouse used fake base-metal inventory-receipts to take up loans - commodity finance deals
http://www.bloomberg.com/news/2014-06-10/goldman-sees-china-commodity-financing-unwinding.html

Part 2: Unwinding of these commodity finance deals (CFDs) will cause gold to rally???
http://www.macrobusiness.com.au/2014/06/macro-morning-gold-rocket

i read the article until blur blur
 

SockPuppet

Alfrescian
Loyal
wtf are u a OCBC banker or something?why u keep posting all these nonsense and giving us lectures on stocks and commodities terms?

post some real analysis on the stock market please.

Why you not happy with Run's articles? even if he is an OCBC banker so what? OCBC is world's strongest bank! OCBC is best!
 

Runifyouhaveto

Alfrescian
Loyal
Why you not happy with Run's articles? even if he is an OCBC banker so what? OCBC is world's strongest bank! OCBC is best!

Thank you for your kind words sockpuppet,
paiseh lah, RUN don't even have degree.

OCBC is very strong because they got a lot, a lot, a lot of cheap land hidden in their coffers and subsidiary companies.
 

krafty

Alfrescian (Inf)
Asset
one thing i notice is that when RMB is up, gold is up too.:o

can teach me or explain to me why people say that the china missing-metal scandal in port will cause gold price to go up (but not really, as of now?)

Part 1: Chinese port/warehouse used fake base-metal inventory-receipts to take up loans - commodity finance deals
http://www.bloomberg.com/news/2014-06-10/goldman-sees-china-commodity-financing-unwinding.html

Part 2: Unwinding of these commodity finance deals (CFDs) will cause gold to rally???
http://www.macrobusiness.com.au/2014/06/macro-morning-gold-rocket

i read the article until blur blur
 

krafty

Alfrescian (Inf)
Asset
http://www.reuters.com/article/2014/06/10/uk-gold-fix-lme-idUSKBN0EL2HB20140610

:kma:

(Reuters) - The global gold price setting benchmark or "fix" is open to manipulation, said the head of the London Metal Exchange (LME), which is competing to offer an alternative to the silver fix when the system is disbanded in August.

The gold and silver fixes, along with other commodity benchmarks, have come under increasing scrutiny by regulators in Europe and the United States since a London Interbank Offered Rate (Libor) manipulation case last year.

"When people sit around a table and lift a flag in the gold market and say this is where the price is, obviously it is open to manipulation if it's done in this opaque way," LME Chief Executive Garry Jones told a conference in London on Tuesday, giving no further details.

The gold fix - a benchmark widely used across the industry - is set twice a day by banks that get together over the telephone to work out a standard price for the metal based on transactions between their clients.

Flags were used when fixing members met in a room in London - unlike now when the fix is conducted via a conference call. If a member needed a pause in the fixing process in order to recalculate their overall selling or buying interest they would raise a small flag on the desk in front of them and then lower it when they were ready to continue with the process.

Flags are no longer used, but a fixing member may still call "flag" if they need a short pause to recalculate their overall interest which brings the fixing to a temporary halt. During that time the chairman cannot fix the price.

LME RING TRANSPARENT

Jones said the LME system of open-outcry ring trading was a good example of transparent price setting.

"I think more of the reference prices will be set by exchanges... a neutral independent place where transactions happen," he said.

Deutsche Bank said in January it was pulling out of the group of banks that set the benchmarks for gold and silver prices, reducing their number from five to four.

The move to disband the silver fix came after Deutsche Bank failed to attract a replacement after putting its fixing seats up for sale.

Barclays Plc, one of the four remaining fixing member banks, was fined 26 million pounds last month for failures in internal controls that allowed a trader to manipulate the setting of gold prices, just a day after the bank was fined for rigging Libor interest rates in 2012.

Last month, London Silver Market Fixing Limited said it would stop administering the benchmark on Aug. 14.

The LME and the Chicago Mercantile Exchange (CME) both said last month they were working with the London Bullion Market Association (LBMA) and the precious metals industry to find an electronic-based solution to the silver fix when the century-old system is disbanded in August.

Jones did not give details of the solution for the silver fix to be offered by the LME, owned by Hong Kong Exchanges and Clearing Ltd, but sources have said it is transaction-based.

"We think that going forward can improve the situation there is at the moment. We have all the resources, the regulatory overview and obviously we have 137 years of metals experience," he told reporters following a panel discussion at the International Derivatives Expo in London.

(Reporting by Eric Onstad; editing by Susan Thomas)
 

krafty

Alfrescian (Inf)
Asset
'Ultimate inside job': Australian trader accused

The US government's case against senior Australian financial trader Paul Thompson has been bolstered with a Japanese co-accused pleading guilty to what prosecutor's describe as "the ultimate inside job".

Singapore-based Thompson, who was Rabobank's head of money market and derivatives trading for northeast Asia, and three other former Rabobank employees, were charged in April by a US federal grand jury with conspiracy to commit wire fraud and bank fraud.

The quartet is accused of manipulating Rabobank's Yen London InterBank Offered Rate (LIBOR), an average interest rate calculated based on submissions from leading banks around the world.

LIBOR serves as the primary benchmark for short-term interest rates globally and is used as a reference rate for interest rate contracts, mortgages, credit cards and other consumer lending products.

"This was the ultimate inside job," US assistant attorney-general Leslie Caldwell said.

"As alleged, traders illegally influenced the very interest rate on which their trades were based, using fraud to gain an unfair advantage."

Takayuki Yagami, a Japanese national who specialised in yen derivatives at Rabobank, entered the guilty plea on Tuesday in a New York court.

US government officials trumpeted the guilty plea, which bolsters the case prosecutors have built against Yagami's Rabobank colleagues Thompson, Paul Robson of the United Kingdom and Tetsuya Motomura of Japan.

From about May 2006 to at least January 2011, the four defendants allegedly made false and fraudulent Yen LIBOR submissions for the benefit of their trading positions.

Because the trades were settled based on the published Yen LIBOR, the profitability of their trading positions depended on the direction in which Yen LIBORs moved, prosecutors said.

"I'll probably get a few phone calls but no worries mate there's bigger crooks in the market than us guys!" Robson allegedly wrote in an email exchange with Yagami.

Robson worked as a senior trader at Rabobank's money markets and short term forwards desk in London, Motomura was a senior trader at Rabobank's Tokyo desk and Yagami worked as a senior trader at Rabobank's money market/foreign currency forwards desks in Asia.

AAP
 

SgGoneWrong

Alfrescian (Inf)
Asset
From krafty's posts, it shows that gold price can easily be manipulated. In a way it shows that gold supply may be infinite like oil but lied to whole world that it's limited in supply. Just depends on the world elites to set the price.
 

Runifyouhaveto

Alfrescian
Loyal
Singapore's drive to become gold hub continues

Singapore's plans to become a gold and precious metals hub took a key step forward Thursday. Metalor Singapore – a newly created refinery in the Metalor Group – was added to the London Bullion Market Association’s (LBMA) good delivery list.
http://www.resourceinvestor.com/2014/07/25/singapores-drive-to-become-gold-hub-continues



Jewelleries & pawnshops always give lousy rates when we want to offload gold to them. Next time maybe can ask Metalor to quote for better rates, deal-direct omit the middlemen.
 
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