Finance & Business
Gold Trading Slumps in Hong Kong
At one time, Hong Kong was a “golden” location for trading. Specifically, Hong Kong was the major hub for gold trading in China if not Asia as a hole. As a result, there may be ups and downs in the price of gold due to some of the instability in the current gold landscape as a result.
As most are well aware, investing and trading in gold and gold related assets such as stocks is incredibly popular these days. There is good reason for the popularity. Concerns over the global economy have led many to forgo putting money into traditional assets and into the precious metals market. Currencies have a tendency to be very unstable when markets are the same. Worries about inflation definitely boost interest in gold trading and investing.
In China, the specter of a economic bubble seems to always loom. Not everyone believes China’s economy is going to be stable in the near future. Investing in gold makes sense and Hong Kong was all the better for it.
Now, it appears all that is going to change for Hong Kong. In 2013, 1,175 metric tons of gold were important into China through Hong Kong. Obviously, this would have a hugely positive effect on Hong Kong’s economy if it continues. It’s not though.
China is going to start importing gold directly through Shanghai. For anyone who lives in Hong Kong and works in an industry involving the physical handling and trading of gold, well, this could prove to be a major problem. For those who are involved as mere traders of gold who work through a broker, this might not turn out to be much of a problem. Yet, issues in any gold market can have a negative effect on the price and traders do not want to see a drop in the value of their gold.
Perhaps now is the time to wait a while and see how the gold market plays out. Reading and reviewing news related to gold and what is happening in China is strongly recommended as well. Prudence is always wise when trading.