Hong Kong to start yuan based silver bar trade this year

After launching the first yaun-denominated gold bar trading in October last year, Hong Kong’s Chinese Gold & Silver Exchange Society said it also plans yuan-denominated silver market.

According to Haywood Cheung Tak-hay, president of CGSE, the launch will be on the second half of this year as a lot of preparatory work needed to be done as silver market is more volatile than gold.

He said he expects daily transaction of gold in the city’s gold exchange to increase 30% in the next two years, boosted by yuan-denominated gold products. Gold transactions on the exchange currently exceed HK$50 billion each day.

Meanwhile, a brief consolidation in gold prices led to a lower transaction volume in yuan-denominated gold-bar trading on the exchange on the first day of the year of the Dargon.

999 gold price gained 2.2 percent from the previous trading day, to HK$15,830 per tael. It was the third highest rise since 2006. Prices increased by 3.76 percent and 3.09 percent in

Trading of the yuan-denominated gold bars in Hong Kong is expected to meet strong demand, given the expectations that the Chinese currency would appreciate.

The Hong Kong-based Chinese Gold and Silver Exchange Society (CGSE) started as a spot market for gold and silver. Trading began in 1910 as the Chinese Gold and Silver Society. – BullionStreet

Posted by Silver Guru on Jan 27 2012. Filed under Silver prices. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry