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Chinese gold bugs will soon find it easier to invest as a number of fund managers have received...

Chinese gold bugs will soon find it easier to invest as a number of fund managers have received permission to create gold ETFs to trade in Shanghai and Shenzhen, according to sources. It remains unclear as to whether these will be physically backed by the metal (thus boosting demand for it).
Comments (4)
  • Denny_Chasteen
    , contributor
    Comments (700) | Send Message
     
    This could actually bad for the price of gold. There is a lot of corruption in China. Investment will be drawn away from real gold and placed into paper gold. Many Chinese may not recognize the difference. I feel like there are probably twice or even three times as many people right now who think they own gold and really don't. Kind of like the old pigeon drop scam.

     

    This has the same effect to the price of gold as printing money does for fiat currency. Since there is really only one price for gold it has to be affected by all this worthless "paper gold." Does it not?
    20 Aug 2012, 11:03 AM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    It won´t be backed...but the Chinese will say it is...they are great at scams...
    20 Aug 2012, 11:47 AM Reply Like
  • Tricky
    , contributor
    Comments (1583) | Send Message
     
    LOL, indeed. I won't be the least bit surprised if this will become the mother of all Chinese scams.
    20 Aug 2012, 01:11 PM Reply Like
  • Denny_Chasteen
    , contributor
    Comments (700) | Send Message
     
    That's what I am thinking. To what extent could this "under mine" the price of gold? Sorry for the pun.
    20 Aug 2012, 11:55 AM Reply Like
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