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Muflih Hidayat: China's paper gold trading shutdown and its global price impact
11:04a ET Sunday, July 19, 2026
Dear Friend of GATA and Gold:
Australia's Discovery/Alert internet site published yesterday a brilliant and comprehensive report by its mining journalist, Muflih Hidayat, about China's plan to replace Western "paper" pricing of gold -- derivative-based pricing -- with pricing based on trading of real metal in Shanghai and Hong Kong.
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The report is headlined "China's Paper Gold Trading Shutdown and Its Global Price Impact" and its introductory paragraphs are below. It is likely the best reporting that has been done this year about what seem like imminent and profound changes in the gold and currency markets.
Please don't miss it.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org
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China's Paper Gold Trading Shutdown and Its Global Price Impact
By Muflih Hidayat
Discovery/Alert, Perth, Australia
Saturday, July 18, 2026
Every day millions of investors glance at a number on a screen and assume it tells them what gold is worth. That assumption has rarely been questioned with more structural justification than it is today.
The mechanics of how gold prices are actually formed, and what backs those prices in physical reality, are questions that have moved from the fringes of monetary theory into the center of one of the most significant financial transitions now unfolding in Asia.
The China paper gold trading shutdown is not a story about restricting access to gold. It is a story about removing synthetic price-setting instruments from the world's largest retail market and replacing them with a framework that demands that real metal moves when trades are made.
The distinction is foundational, and its implications extend far beyond China's borders. ...
... For the remainder of the report:
https://discoveryalert.com.au/china-paper-gold-trading-shutdown-physical-price-discovery/
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