More on PAGE

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Sat, Sep 10, 2011 - 11:50am

Market action this week only further demonstrated the need for a new, global pricing mechanism for physical gold and silver. As stated by Ned Naylor-Leyland, the current system allows the "futures tail to wag the spot dog". I believe this collusive, manipulative nonsense will soon come to an end with the introduction of the Pan Asia Gold Exchange later this year. If you haven't already, please go back and read this before you continue:

https://www.tfmetalsreport.com/blog/2256/page-turning

After writing the note above, I was placed in contact with a very important gentleman through the serendipitous intervention of an internationally-connected Turdite. He asked if I'd "like to speak with one of the guys responsible for setting up the PAGE". I, of course, said "YES!".

Graham Newall of Power Capital Global was recently appointed Senior Vice President of the PAGE. Below is the complete text of the questions I submitted to him last week. Graham's responses are printed in capital letters, directly below each question. I hope that all Turdites find this information helpful in developing an understanding and appreciation of the impact the PAGE will have on the global precious metals markets in the years to come.

Hello, Graham. I hope you've had a nice weekend. I am looking for some fireworks when trading resumes on the Globex this evening at 6:00 NY time. It certainly appears that this will be another interesting week.
Thanks again for allowing me the opportunity to visit with you. I am very much looking forward to seeing the impact the PAGE will have on the international spot metals markets. I firmly believe that the LBMA/Comex/BullionBank system is outdated and that the PAGE is going to usher in a new era of transparency in price discovery.
I have a short list of questions below. Would it be OK to present to my readers the list of my questions with your answers? My hope is to continue to draw international attention to the PAGE and present it as a viable alternative to the LBMA status quo.


1) Graham, can you please describe your role and the role of PCG in building and/or managing the PAGE?

I HAVE BEEN APPOINTED SENIOR VICE PRESIDENT OF THE PAN ASIA GOLD EXCHANGE RESPONSIBLE FOR STRATEGY AND REPRESENTING THE EXCHANGE INTERNATIONALLY . POWER CAPITAL WILL BE THE FIRST MARKET MAKER IN THIS CONTRACT



2) PAGE is already trading a 10-ounce gold contract. Are there plans to issue a silver contract, as well?

THE 10OZ DEFERRED SETTLEMENT WILL START TRADING SHORTLY OF THE MOON FESTIVAL THIS MONTH. THE SILVER CONTRACT IS PLANNED FOR LATE 4TH QUARTER 2011


3) I understand that Chinese citizens can buy the 10-ounce contract through the Agricultural Bank of China. Do global retail and/or institutional investors have the same access to this contract? If not, will this access be allowed in the future?

CHINESE CITIZENS ARE REQUIRED TO LODGE MARGIN IN AN ACCOUNT WITH AGRICULTURAL BANK OF CHINA AND TRADE DIRECTLY WITH THE MARKET MAKER ONLINE. GLOBAL RETAIL/INSTITUTIONAL INVESTORS MAY TRADE THROUGH THE MARKET MAKERS APPROVED BROKER IN HONG KONG DETAILS OF WHICH WILL BE RELEASED SHORTLY



4) Many are anxiously awaiting the PAGE to begin trading their 90-day, rolling spot gold contract. Several questions here:
a) What are the key differences between the 10-ounce contract and the spot contract?

THE 10OZ CONTRACT ROLLS EVERYDAY AND IS A MARGINED TRADE. THE 90 DAY CONTRACT IS A RECEIPT FOR A PHYSICAL BAR OF GOLD WHICH WILL BE FULLY FUNDED AND ON MATURITY CAN BE "ROLLED" AND ANOTHER RECEIPT ISSUED OR EXCHANGED FOR THE PHYSICAL GOLD.

b) What is your best estimate for the date trading will begin?

I BELIEVE THAT THE CONTRACT WILL BEGIN TRADING IN EARLY DECEMBER

c) What regulations are in place to ensure 1:1 allocation of the gold behind the contract? Is the Chinese government the supplier of the physical inventory behind the exchange?

THE GOLD WILL BE HELD IN TRUST BY AN EXTERNAL ADMINISTRATOR WITH A CHINESE BANK REGULATED BY THE PEOPLES BANK OF CHINA ACTING AS TRUSTEE ENSURING THAT THE REQUIRED 1:1 ALLOCATION IS MET AT ALL TIMES

d) I imagine that global, institutional investors will be allowed to buy the contract. Will global retail be available?

AS THE PRICE OF GOLD APPRECIATES THE CASH REQUIREMENT WILL PROVE PROHIBITIVE FOR MOST RETAIL INVESTORS MAKING A MICRO CONTRACT TRADING ALONG SIDE THE MAIN CONTRACT A PRACTICAL NECESSITY IN MUCH THE SAME WAY AS THE COMEX MICRO CONTRACT.

e) Can a global investor take physical delivery or must the gold be stored in China?

THE TRUST WILL HOLD GOLD STORED IN APPROVED VAULTS WORLDWIDE

f) Are there plans to issue a similar silver contract?

NOT AT THIS STAGE



5) This also seems to be a conduit through which the Chinese government is allowing the global distribution of renminbi. For example, if I buy gold in London for $ and sell it on PAGE, do I receive renminbi for my gold?

THE PROVINCE OF YUNNAN HAS BEEN DESIGNATED AS A FREE TRADE ZONE OF RMB. THE RECEIPT MATURES IN RMB.



Again, Graham, thanks in advance for any assistance you can provide. My readers and I greatly value your input. TF

I HOPE THIS IS USEFUL PLEASE EMAIL ME ANY TIME IF YOU HAVE FURTHER QUESTIONS - I WILL KEEP YOU INFORMED AS THE FINAL DETAILS ARE WORKED OUT.
Best regards
Graham

​Out of respect for Graham's time, I'd tried to keep the list of questions relatively short. However, as you can see, Graham has graciously offered to answer follow-up questions, as well. Again, I will not inundate him but, dear reader, if you have a burning question for Graham, please include it in the comments below and I will pass a few along to Graham early next week.

Thanks again to Graham and all Turdites everywhere for your contributions to TFMR!

TF

About the Author

Founder
turd [at] tfmetalsreport [dot] com ()

  278 Comments

  Refresh
TheGoodDoctorMenthalo
Sep 12, 2011 - 5:41pm

@Menthalo Yes, I would like

@Menthalo Yes, I would like clarification on this too. Turd can you get clarification on this? Will there be physical delivery? His answer to your question seems fairly open ended.

Menthalo
Sep 12, 2011 - 11:25am

A new kind of GLD ?

This phrase sounds like something known...
Graham Newall did not answer the question, imo ... "take physical delivery" ? "hold gold stored" ... e) Can a global investor take physical delivery or must the gold be stored in China?

THE TRUST WILL HOLD GOLD STORED IN APPROVED VAULTS WORLDWIDE

stoneeh
Sep 12, 2011 - 8:04am

Very curious right now about

Very curious right now about the movement of the USD.

GS_PHYScwavec
Sep 12, 2011 - 5:49am

Re: India Gold Price

Try following URL, this is from https://www.TheBullionDesk.com

Click on Global tab and you would get global prices.

For India check :- https://www.indiatbd.com/

Don't forget to add 1% vat for actual retail price.

bern
Sep 11, 2011 - 10:19pm

@MollyRatchet

Yes, they are required to ID when buying from you to comply with law enforcement regulations same as a pawn shop to supposedly help prevent fencing of stolen property.

margaritatime
Sep 11, 2011 - 8:18pm
Seoul_Stacker
Sep 11, 2011 - 7:49pm

Asian Markets

Not for sure what Asian markets are open today, but here in Seoul it's as quiet as can be.

By the way, this is my first post, and I can't begin to tell you guys (and gals) how appreciative I am for all of your insight, commentary, videos etc. This place is great!!

I'd also like to share with you something very interesting re: PM's (one that helped wake me up) that I witnessed over here about a year ago. I live in a small rural Korean village, and about a year ago I started noticing a van parked on the side of the main road leading into town with a sign on the side of it that read "buying gold and silver." At that time, I had lived here for almost 13 years and never seen anything like it before. Take it for what it's worth, but I took it as a fairly obvious and ominous sign that "somebody" over here had suddenly become interested in buying as much silver and gold as they could get their hands on...

Keep up the excellent work Turd and Turdites, and most importantly ~ keep the faith!! :)

Cheers!

Jake
Sep 11, 2011 - 7:39pm

Visit the FAQ page to learn how to track your last read comment, add images, embed videos, tweets, and animated gifs, and more.

¤
Sep 11, 2011 - 7:11pm

new thread

new thread

MollyRatchet
Sep 11, 2011 - 7:05pm

PM Local Dealers

I just recently began to look into the terms that our local dealers are using when selling silver bullion (100 oz) to them. I was somewhat surprised however began to understand the reasoning.

The first dealer stated to me that he would pay -$1.40 per under spot for JM bars, -$1.65 for Silvertown bars and other generic bars. He stated to me that he could not resell the generic bars and would have to remelt to get rid of silver. He was also pleading for 10 oz silver bars in which he would pay -$1.00 under spot. The second dealer I approached must have been on crack because he held firm at -$10% below spot. Needless to say that was a quick visit. The last dealer offered -$2.00 under spot, period.

My question to the group .. what have you been seeing in your areas as offer prices from the local dealers? The first dealer seemed to be the most logical but I am not sure about complete trust yet. He demanded ID in form of a Driver's License .. is this normal ? I am learning here ... probably like many and could use some sound advice from experienced individuals ..thanks.

MR

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