Watching media about the crash in Chinese stock exchange prices we seldom see chart data putting in perspective the reality of the rapid spike in prices since early 2015.
Why would not the Shanghai index fall so as to substantially remove this rapid price spike? Loud alarm bells should have rung in Govt by early 2015.
Given their cultural love affair with gold & the volume of real physical trading which the SGX has; there is probably only one direction the Ma & Pa investors who recently sat watching the computer screens , while knitting to pass the time, will go.
With China the world’s largest producer & regularly importing more gold than the rest of the world produces on a monthly basis; it will only put an even greater squeeze on the worlds supply.
It is a fair bet that the Bullion Bankers & paper gold traders in London & New York are not sleeping too well. i.e. :-
What will they do when their traders get too nervous to keep rolling over hot air in an already massively manipulated market ?
One would have to wonder what the global reserve currency will be post the hegemony of the $US?
We live in interesting times indeed!