{"id":34528,"date":"2018-05-25T06:01:18","date_gmt":"2018-05-25T11:01:18","guid":{"rendered":"http:\/\/olduvai.ca\/?p=34528"},"modified":"2018-05-25T06:01:18","modified_gmt":"2018-05-25T11:01:18","slug":"petroyuan-is-only-the-beginning-pop-goes-the-metals-market","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=34528","title":{"rendered":"Petroyuan is Only the Beginning, Pop Goes the Metals\u00a0Market"},"content":{"rendered":"<header class=\"entry-header\">\n<h3 class=\"entry-title\"><a href=\"https:\/\/tomluongo.me\/2018\/05\/24\/petroyuan-is-only-the-beginning-pop-goes-the-metals-market\/\">Petroyuan is Only the Beginning, Pop Goes the Metals\u00a0Market<\/a><\/h3>\n<\/header>\n<div class=\"entry-content\">\n<blockquote><p><strong><em>No boom today.\u00a0 Boom tomorrow.\u00a0 There\u2019s always a boom tomorrow\u201d<\/em><\/strong><\/p>\n<p><strong><em>\u2014 Susan Ivanova \u201cBabylon 5\u201d<\/em><\/strong><\/p><\/blockquote>\n<p>When Hong Kong Exchanges and Clearing (HKEX) bought the London Metals exchange in 2012 all the speculation about about the effects on gold trading.\u00a0 The primary reason for buying the LME was to obtain its warehouses and ensure a free flow of metals to points east.<\/p>\n<p>What it also did was give them control over what type and kind of futures contracts could be traded on their exchanges.\u00a0 No longer would the west control this very important part of the precious and industrial metal supply chain.<\/p>\n<p>Now we\u2019re seeing the next evolution of the power of owning the exchange.\u00a0 \u00a0After successfully launching a yuan-denominated gold futures contract last year, the LME is now preparing to issue a range <a href=\"https:\/\/www.zerohedge.com\/news\/2018-05-23\/lme-plans-launch-yuan-denominated-metals-futures-markets\">of yuan-denominated metals futures.<\/a><\/p>\n<p>In other words\u2026 Boom.<\/p>\n<p><strong>First Rule: Do No Harm<\/strong><\/p>\n<p>When China bought the LME the usual suspects in the contrarian investing community talked about the coming apocalypse for the bullion banks.\u00a0 It never happened. In fact, China was in a position to help them cap the price of gold and extend the gold bear market for the past six years while it and its strategic partners, namely Russia, accumulated vast quantities of the world\u2019s most important metal.<\/p>\n<p>The Chinese were smart. Take over the LME and, for a while, change nothing. Don\u2019t upset the apple cart and allow markets to operate mostly normally.\u00a0 Now their ownership of the LME is not an issue.<\/p>\n<p>Until now.\u00a0 First gold trading in Yuan. Now the rest of the metals.<\/p>\n<p>We\u2019ve all been breathlessly focused on how strong the so-called \u2018petroyuan\u2019 oil futures contract has been for the Shanghai Exchange.\u00a0 It has captured more than 12% of the total oil futures market in just under two months.\u00a0 That\u2019s incredible.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Petroyuan is Only the Beginning, Pop Goes the Metals\u00a0Market No boom today.\u00a0 Boom tomorrow.\u00a0 There\u2019s always a boom tomorrow\u201d \u2014 Susan Ivanova \u201cBabylon 5\u201d When Hong Kong Exchanges and Clearing (HKEX) bought the London Metals exchange in 2012 all the speculation about about the effects on gold trading.\u00a0 The primary reason for buying the LME [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1679,374,20237,20239,20240,7603,20238,6466,647,16963],"class_list":["post-34528","post","type-post","status-publish","format-standard","hentry","category-economics","tag-futures-contracts","tag-gold","tag-hina","tag-hkex","tag-hong-kong-exchanges-and-clearning","tag-lme","tag-london-metals-exchange","tag-petroyuan","tag-precious-metals","tag-tom-luongo"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/34528","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=34528"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/34528\/revisions"}],"predecessor-version":[{"id":34529,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/34528\/revisions\/34529"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=34528"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=34528"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=34528"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}