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HUGE breaking news!!!! No more paper trading in China Merchants Bank

vulcanizevulcanize Posts: 1,150 ✭✭✭✭✭
edited August 13, 2022 9:47PM in Precious Metals

Deadline: August 15. Chinese Merchants Bank say bye-bye to paper PM trading.
After the new account opening of paper PM banning, commercial banks will close the door of buying paper PM on August 15. China Merchants Bank asked customers to clear positions before October 17.


Same news made it's way to the Kitco forum.
https://gold-forum.kitco.com/showthread.php?155105-No-more-paper-trading-in-China!

Comments

  • vulcanizevulcanize Posts: 1,150 ✭✭✭✭✭

    Wonder if there is truth to it because am not able to see any news articles on mainstream media.

    If true, ramifications could be HUGE!!!!

  • vulcanizevulcanize Posts: 1,150 ✭✭✭✭✭

    Apparently, it’s the China Merchants Bank suspending it and not every Chinese bank.
    https://m.cmbchina.com/Notice/Detail.aspx?id=db321f4e-a2f3-48b7-9006-71f70a2cd6a2

    整零售账户贵金属等相关业务的公告

    尊敬的客户:  

    为顺应市场形势变化,更好地保护投资者权益,我行对个人纸贵金属双向交易业务、个人双向外汇买卖业务、个人实盘纸黄金纸白银买卖业务及“招财金”业务进行调整,具体如下。

    一、我行个人纸贵金属双向交易业务、个人双向外汇买卖业务、个人实盘纸黄金纸白银买卖业务及“招财金”业务即将停办,上述业务的持仓客户及现货库存客户请于2022年10月17日前择机自主平仓。

    二、上述业务调整措施后续如有补充,以我行官网最新公告为准。

    若您需进一步了解上述业务调整事项的详情,可咨询当地网点或拨打我行95555客户服务热线。

    由此给您带来的不便,敬请谅解。

    特此公告。

    Announcement on Precious Metals and Other Related Businesses in Retail Accounts

    Dear Customer:

    In order to adapt to changes in the market situation and better protect the rights and interests of investors, our bank has adjusted the personal paper precious metal two-way trading business, personal two-way foreign exchange trading business, personal firm paper gold paper silver trading business and "Zhao Cai Jin" business. as follows.

    1. Our bank's personal paper precious metal two-way trading business, personal two-way foreign exchange trading business, personal firm paper gold paper silver trading business and "Zhao Cai Jin" business will be suspended soon. Customers who hold positions and spot inventory customers of the above businesses, please contact us in October 2022. Choose an opportunity to close your positions before the 17th.

    2. If the above business adjustment measures are supplemented in the future, the latest announcement on our official website shall prevail.

    If you want to know more about the details of the above business adjustments, you can consult local outlets or call our customer service hotline 95555.

    This gives you the inconvenience, please understand.

    Special announcement.

  • jmski52jmski52 Posts: 21,597 ✭✭✭✭✭

    Sounds like there's a move afoot to change the way metals are being traded. Interesting.

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • vulcanizevulcanize Posts: 1,150 ✭✭✭✭✭

    @jmski52 said:
    Sounds like there's a move afoot to change the way metals are being traded. Interesting.

    Yup, something's surely brewing.

    And if not related directly.....

    Five Chinese firms announce plans to delist from US on same day amid ‘decaying market’

    https://www.globaltimes.cn/page/202208/1272859.shtml

    Five Chinese state-owned giants on Friday separately announced plans to delist their American depository shares (ADS) from the New York Stock Exchange (NYSE), drawing widespread attention amid escalating China-US tensions and constant US crackdowns on Chinese companies, including a push to potentially delist hundreds of Chinese firms in what many call a "financial decoupling."

    Interesting times.

  • jmski52jmski52 Posts: 21,597 ✭✭✭✭✭

    The BRICS are trying to decouple from the dollar, while money is fleeing Europe to the US, which strengthens the dollar. So dollars are being repatriated (which is inflationary domestically) in addition to the Fed's & Congress's massively inflationary money creation. Yup, the next wave of inflation will be impressive.

    As a reminder, BIS has declared gold a Tier I asset during their bigwig Basel III agreements, which ultimately means that any sovereign currency that hopes to be viable at some point in the not too distant future will legally have some degree of backing with physical assets, including gold.

    If gold isn't confiscated from private US citizens again and when the debt-based system inevitably collapses, gold and silver may be two of the last assets standing. China has been encouraging private gold ownership now for at least 5 years, and Russia isn't accepting dollars but they have no problem accepting the Ruble or gold for oil, and it looks like countries doing business with Russia are leaning towards the Ruble, which also means that gold is ascending.

    End the Fed. They aren't doing anybody any favors, except for their influential friends.

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • derrybderryb Posts: 34,860 ✭✭✭✭✭
    edited August 14, 2022 11:30AM

    Might have something to do with a major change in risk that the bank perceives. I wonder if a fear of spoofing by one or more of its trading members is involved. Such spoofing would likely create liability for the bank.

    Most of us here have never heard of this bank nor do we know or understand just how its "personal paper precious metal two way trading business" works, nor do we know it's impact on precious metal prices. I suspect it has no or very little impact. Spot prices are set on the LBMA and COMEX futures market exchanges. Sounds like this bank created an internal market where it's customers could trade paper metals among themselves. Paper metals come in many forms and are not limited to futures contracts. PM ETFs are considered paper metals.

    "It's a big club and you ain't in it." - George Carlin, RIP Carbon dioxide is actually plant food and we could use more of it if we really want a green planet.

  • derrybderryb Posts: 34,860 ✭✭✭✭✭
    edited August 14, 2022 7:31AM

    @jmski52 said:
    The BRICS are trying to decouple from the dollar.

    This is the most important financial news story of the past few years and it is being ignored by mainstream media. This will be the straw that breaks the dollar's international dominance back.

    "It's a big club and you ain't in it." - George Carlin, RIP Carbon dioxide is actually plant food and we could use more of it if we really want a green planet.

  • blitzdudeblitzdude Posts: 4,593 ✭✭✭✭✭

    @derryb said:

    @jmski52 said:
    The BRICS are trying to decouple from the dollar.

    This is the most important financial news story of the past few years and it is being ignored by mainstream media. This will be the straw that breaks the dollar's international dominance back.

    Another conspiracy that will be another non event. My prediction, gutter down tomorrow. RGDS!.

    The whole worlds off its rocker, buy Gold™.

  • TwoSides2aCoinTwoSides2aCoin Posts: 42,994 ✭✭✭✭✭

    Unhinged from paper , so it's (silver) gonna drop ? This is why I don't listen to clairvoyants.

  • derrybderryb Posts: 34,860 ✭✭✭✭✭
    edited August 14, 2022 11:16AM

    @blitzdude said:

    @derryb said:

    @jmski52 said:
    The BRICS are trying to decouple from the dollar.

    This is the most important financial news story of the past few years and it is being ignored by mainstream media. This will be the straw that breaks the dollar's international dominance back.

    Another conspiracy that will be another non event. My prediction, gutter down tomorrow. RGDS!.

    the "conspiracy fact" has nothing to do with the price of silver tomorrow. It has everything to do with the price of silver when the dollar is no longer king.

    Oops there goes another one. . . India dumps dollar.

    "It's a big club and you ain't in it." - George Carlin, RIP Carbon dioxide is actually plant food and we could use more of it if we really want a green planet.

  • derrybderryb Posts: 34,860 ✭✭✭✭✭
    edited August 14, 2022 12:21PM

    @vulcanize said:
    Wonder if there is truth to it because am not able to see any news articles on mainstream media.

    If true, ramifications could be HUGE!!!!

    The ramification is that a specific bank will no longer offer person to person trading in paper products that include PMs. This is likely a result of the bank re-evaluating its liability/risk in providing such a service.

    Ramification is huge only to that bank's customers who do such trading with other bank customers. No effect on global spot pricing which is set by LBMA and COMEX using paper futures contracts.

    "It's a big club and you ain't in it." - George Carlin, RIP Carbon dioxide is actually plant food and we could use more of it if we really want a green planet.

  • derrybderryb Posts: 34,860 ✭✭✭✭✭
    edited August 14, 2022 12:20PM

    @TwoSides2aCoin said:
    Unhinged from paper , so it's (silver) gonna drop ? This is why I don't listen to clairvoyants.

    When PM pricing becomes completely unhinged from spot pricing, physical PMs will more than likely explode in price. The reason being that the supply of physical silver, unlike unlimited futures contracts, is limited. The law of supply and demand will finally apply to physical PMs. The current price of physical silver with it high premiums is a sneak preview of what happens when physical becomes "unhinged" from paper.

    The "unhinging" is a mental process where buyers and sellers no longer make spot price a component of their physical pricing formula. It is not a physical process and it requires nothing more than a change in the mindset of PM traders. We are witnessing the beginning of the mindset change with currently high silver premiums.

    It is important to note that a "bankruptcy" in the futures market could occur if COMEX vaults are suddenly drained of their physical bar holdings and they are unable to deliver when demanded. This is why COMEX warehouse inventories are closely followed by the public.

    Ronan Manly recently issued an interesting report on LBMA and COMEX vault silver inventories:

    ". . .as witnessed in early 2021, the bullion banking cartel is terrified of the silver-backed ETFs gobbling up greater percentages of the London LBMA vault stocks. If you were a detective, you might say that this explains why, since mid April, the silver price has been falling. Because since mid April, there is a strong positive correlation between sharp falls in the silver price and sharp falls in the amount of silver held in silver-backed ETFs (such as in SLV and the Deutsche XTrackers ETFs). It’s as if they are inducing the ETFs to shed silver by creating a lower silver price to literally flush silver out of the ETFs."

    "It's a big club and you ain't in it." - George Carlin, RIP Carbon dioxide is actually plant food and we could use more of it if we really want a green planet.

  • jclovescoinsjclovescoins Posts: 1,654 ✭✭✭✭✭

    well it sure isn't helping the silver price lol

  • meluaufeetmeluaufeet Posts: 717 ✭✭✭

    I thought those trades were executed via Hong Kong.

  • blitzdudeblitzdude Posts: 4,593 ✭✭✭✭✭

    @derryb said:

    @blitzdude said:

    @derryb said:

    @jmski52 said:
    The BRICS are trying to decouple from the dollar.

    This is the most important financial news story of the past few years and it is being ignored by mainstream media. This will be the straw that breaks the dollar's international dominance back.

    Another conspiracy that will be another non event. My prediction, gutter down tomorrow. RGDS!.

    the "conspiracy fact" has nothing to do with the price of silver tomorrow. It has everything to do with the price of silver when the dollar is no longer king.

    Oops there goes another one. . . India dumps dollar.

    Yawn, well OK then....... Looks like the USD rules the day and gutter down again. LOL How can you always be so wrong but continue to try to convince everyone that you are right? CNFSD!!?!!?!!!!???

    The whole worlds off its rocker, buy Gold™.

  • streeterstreeter Posts: 4,028 ✭✭✭✭

    Gutter down tomorrow? Lol.

    50/50 chance of being correct.

    Just in time to post lowball bids on PM forum. Then retract when AG rises 50¢.

    Have a nice day
  • jmski52jmski52 Posts: 21,597 ✭✭✭✭✭

    Trades the ETF, while failing to recognize that he's not actually trading the same thing as physical.

    Holds physical but can't explain why he holds it while emotionally badmouthing an inanimate metal.

    Case study in cognitive dissonance.

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • blitzdudeblitzdude Posts: 4,593 ✭✭✭✭✭

    @blitzdude said:

    @derryb said:

    @jmski52 said:
    The BRICS are trying to decouple from the dollar.

    This is the most important financial news story of the past few years and it is being ignored by mainstream media. This will be the straw that breaks the dollar's international dominance back.

    Another conspiracy that will be another non event. My prediction, gutter down tomorrow. RGDS!.

    And the next day and the next day and the next groundhog day. Stay strong stackers, The Chinese are about to put an end to all this paper conspiracy BS. RFFL!!!

    The whole worlds off its rocker, buy Gold™.

  • TwoSides2aCoinTwoSides2aCoin Posts: 42,994 ✭✭✭✭✭

    This is gettin' to be like Mickey D.
    I'm lovin' it. Cheap as tea.

  • ExbritExbrit Posts: 982 ✭✭✭✭

    Where there is smoke there is fire. Now is it a prairie fire, or just someone burning a brush pile in their backyard?

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