West's governments aren't the only ones that like to rig markets

Section:

Opponents Squash Platinum Plans of Shanghai Gold Exchange

By Henry Sanderson
Financial Times, London
Monday, May 20, 2019

The Shanghai Gold Exchange has delayed plans for a platinum contract after failing to gain political clearance, threatening a push to open up a market for the precious metal dominated by the arm of a big state-owned company.

The SGE had been due to launch a two-way cash-settled contract -- enabling users to sell and buy platinum -- in the first quarter but it failed to win approval, according to two people familiar with the exchange.

... Dispatch continues below ...


ADVERTISEMENT

Buy metals at GoldMoney and enjoy international storage

GoldMoney was established in 2001 by James and Geoff Turk and is safeguarding more than $1.7 billion in metals and currencies. Buy gold, silver, platinum, and palladium from GoldMoney over the Internet and store them in vaults in Canada, Hong Kong, Singapore, Switzerland, and the United Kingdom, ­taking advantage of GoldMoney's low storage rates, among the most competitive in the industry. GoldMoney also offers delivery of 100-gram and 1-kilogram gold bars and 1-kilogram silver bars. To learn more, please visit:

http://www.goldmoney.com/?gmrefcode=gata



The failure highlights the difficulties of reforming China's domestic commodity markets, where state-owned companies hold sway.

A platinum contract in China would have given carmakers in the world's largest auto market the ability to hedge the platinum they use in their catalytic converters or fuel cell vehicles. Investors would also have been able to speculate on prices of the metal.

"It is quite a setback for the market," said one industry source in China.

China is the world's largest consumer of platinum, using 73.8 tonnes last year, a third of global demand, according to Johnson Matthey, a maker of platinum-based catalysts.
...

... For the remainder of the report:

https://www.ft.com/content/89d27fce-77de-11e9-bbad-7c18c0ea0201

* * *

Help keep GATA going:

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16