Last Updated : January 04, 2010 05:40
Paper gold derivative trading halted in Vietnam
By Jim Sinclair
First China and now Vietnam react to derivatives, Vietnam to paper gold derivative trading, China to energy and credit default derivatives.
The headline is extremely misgiving. Paper gold derivative trading has been halted. Cash gold trading survives.
It might be a neat idea for the West, but it will not happen.
Vietnam to put an end to gold trading
By Tim Johnston in Bangkok
Published: January 1 2010 13:09 | Last updated: January 1 2010 13:09
Vietnam has ordered all gold trading floors to close by the end of March, putting an end to a business which turns over $1bn a day but which the government feared was spinning out of control.
“Both the owners of the gold-trading floors and traders are doing their transactions on a fragile foundation that lacks legal, economic and technical frameworks and knowledge,” the government said in a statement.
The order also bans using overseas accounts, but does not affect jewellery or retail gold sales.
The government said it was particularly concerned that some investors had been drawn into overleveraging their positions by low interest rates and the ever-increasing price of gold , which has risen from $660/oz when the first trading floor was started in 2007 to almost $1,100/oz today.
Courtesy: www.jsmineset.com
MCX Tin 30 April 2012
contract was trading at
Rs 1077.75 . What's your view on it?
