South Korea Opening Gold Exchange In Q1, 2014

gold infoThe South Korean government said today it plans to set up a spot gold exchange by the first quarter of 2014.
The South Korean gold exchange, will be open in the first quarter of 2014 to allow gold spots to be traded in the public market like listed stocks, according to the Financial Services Commission (FSC) as reported by Xinhua.
The introduction came amid growing ‘underground’ gold transactions to evade value-added taxes. Underground gold trading accounts for more than half of the country’s annual gold transactions, the regulator said.
To stimulate transactions in the new gold market, tariff tax exemption will be offered while providing reductions in corporate and income taxes in order to help the fledgling market.

2013 Silver Maples As Low As $2.29 Over Spot at SDBullion!

 

From Goldcore:

Today’s AM fix was USD 1,313.75, EUR 998.21 and GBP 859.22 per ounce.
Friday’s AM fix was USD 1,286.00, EUR 981.53 and GBP 843.45 per ounce.

Gold rose $10.70 or 0.83% on Friday and closed at $1,294.40/oz. Silver climbed $0.11 or 0.57% and closed at $19.49.

Gold was up 0.77% for the week while silver was down 2.01%.

Gold is higher in all currencies and 1.4% higher in dollars. It has climbed above the key technical level of $1,300/oz reaching a one month high on technical buying and short covering as the U.S. dollar fell.

Gold remains in backwardation with stresses being felt in the physical market due to a lack of supply.

Hedge funds and speculators increased their net long positions by 56% last week according to the Commodities Futures Trading Commission but the short position on the COMEX remains near record levels meaning that a significant short squeeze is on the horizon.


Gold Prices/Fixes/Rates/Vols – (Bloomberg)

COMEX inventories continue to fall and JP Morgan saw its eligible gold inventories fall a very large 90,311 ounces as reported by Zero Hedge. This is a massive 66% withdrawal of the firm’s entire inventory of non-Registered gold. It leaves a token 46,000 ounces of gold which means that there is just a little over 1 tonne of gold remaining in JP Morgan’s possession.

Gold is moving from the West to the East and yet the market has yet to appreciate the scale of Chinese demand and Asian physical demand and the scale of the flows.

Buyers in Asia and the Middle East are strong hands who will hold onto their metal as a store of wealth. Their significant, and still very robust, demand should support prices between $1,000 an ounce and $1,200 an ounce.

We are likely to see a resumption of gold’s bull market before the end of the summer and into 2014, however short term weakness is, as always, possible.

The South Korean government said today it plans to set up a spot gold exchange by the first quarter of 2014.


Support & Resistance Chart – (Bloomberg)

South Korea’s financial regulator, the Financial Services Commission, said that it will open the gold exchange next year where gold spots can be traded in the public market.

The South Korean gold exchange, will be open in the first quarter of 2014 to allow gold spots to be traded in the public market like listed stocks, according to the Financial Services Commission (FSC) as reported by Xinhua.

The introduction came amid growing ‘underground’ gold transactions to evade value-added taxes. Underground gold trading accounts for more than half of the country’s annual gold transactions, the regulator said.


Cross Currency Table – (Bloomberg)

Market players will be licensed members that will meet certain financial requirements. Those will include smelters and importers of gold as well as gold craftsman and distributors.

To stimulate transactions in the new gold market, tariff tax exemption will be offered while providing reductions in corporate and income taxes in order to help the fledgling market.

Silver Buffs Generic Add2


Gold Rallies Above $1,300 on Outlook for Stimulus, China Demand – Bloomberg

Gold rises to 1-month high on weaker U.S. dollar – Reuters

Gold Bulls Bet Right as Prices Rally Most Since ’11 – Bloomberg

SouthKorea to Open Gold Trading Market in 2014 - Xinhuanet

COMMENTARY
“Likely Lead To Resumption of Gold’s Bull Market Before End Of Summer” – MarketWatch

Gold Futures Hiccup Indicates Demand Outpacing Supply - Reuters

Gold Breaks Above $1300 As Shorts Cover Most In 4 Months – Zero Hedge

Comments

  1. It seems the South Korean government understands the fundamentals of trade (or business transactions): In order to eliminate the underground trade (which is caused by VAT), make this trade Tax-Exempt AND lower the Corporate and Income Taxes !!!
     
    Another precious metals exchange opening up in the Far East ….. another sign that the big transactions will be happening there, in the days to come.

  2. Hopefully, South Koreans will operate its gold exchange a little better than they operate their airplanes…

  3. Run by the same global banking cartel to fleece physical metal from the poor.

  4. The setting up of gold exchanges all over the world looks to me like a VERY positive turn of events.  The urge to set these up seems to be spreading.  Perhaps in a few years, ALL nations will have a gold exchange.  That would be damned handy for any currencies that become even partially backed by gold or for when gold use in trade settlement becomes more common.  Can these exchanges be abused?  Sure.  What can’t?
     

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