2017 Asia Pacific Precious Metals Conference in Singapore

5th June 2017 - Asia Pacific Precious Metals Conference in Singapore

To read the pdf of the presentation "Globalisation and the Gold Market: The Growing Interconnectivity of Trade and Trading" given by Philip Klapwijk, Managing Director of Precious Metals Insights Limited at the Singapore Bullion Market Association's inaugural Asia Pacific Precious Metals Conference at the Grand Copthorne Waterfront Hotel, Singapore please click on this link:

Proposed gold trading initiatives would promote further interconnectivity in the global gold market:

• LBMA’s OTC trade repository and pricing project

• LME spot and futures trading; centralised clearing venture
• HKEX’s CNH and USD gold futures contracts

• CGSE’s Qianhai / Hong Kong corridor

• SGE partnership with DGCX to trade Shanghai gold futures

• SGX’s Shariah compliant futures contract

• Planned gold futures contract on the ASX

Globalisation and the Gold Market: Conclusions:

• Gold market globalisation is well advanced in terms of trade links, although there
are still important exceptions, e.g. (near) prohibition on gold exports from China

• While Switzerland/UK are still pivotal, other physical entrepôts have become
increasingly important and intra-regional trade, especially within Asia, is growing

• Domestic gold trading has become liberalised in most countries but currency and
capital controls still hinder cross border activity in several cases

• Scope for arbitrage exists where partial gold market liberalisation creates
opportunities based on local / international price or regulatory differences

• China’s market development a key factor for future trends in globalisation; much
depends on the Chinese leadership’s appetite for further capital account
liberalisation and the associated scope for internationalisation of the RMB

• London will remain the dominant OTC trading hub and Comex the principal gold
futures market for the foreseeable future but their market shares will be

Asia Pacific Precious Metals Conference

Since Singapore lifted the Goods and Services Tax (GST) on Investment Precious Metals in 2012, the Singapore Bullion Market Association (SBMA) has been playing an active role in raising the profile of Asian bullion markets internationally. Over the next three years, the SBMA intends to play a greater role in the region by bringing together the bullion markets of the 10 ASEAN countries through the sharing of knowledge and best practices, liaison with governmental agencies and other relevant stakeholders in the region and beyond, and by connecting industry participants to global markets. The Asia Pacific Precious Metals Conference (APPMC) is one such platform through which SBMA and International Enterprise (IE) Singapore will work towards developing and strengthening a unified body in Southeast Asia for the bullion market. SBMA and IE Singapore would like to welcome the entire bullion fraternity to attend the inaugural APPMC here in Singapore and for them to share their views, inputs and suggestions to enhance the region's role in the global bullion market.


Philip Klapwijk managing director of PMI Precious Metals Insights Ltd Gold, silver, platinum and palladium consultants Hong Kong. Email: info@preciousmetalsinsights.com
Website: www.preciousmetalsinsights.com


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