New gold storage facility will be launched in Shanghai free trade zone

21 января 2014
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According to a state plan, new offshore zone will appear in Shanghai free trade zone, and it is going to be possible to make bullion transactions there.

Huan Kaiwen, top operational manager in Malca-AmitGlobal, noted that today a lot of countries already have their own special facilities aimed at storing precious metals. The company suggests that Shanghai free trade zone policy will increase the demand on gold-related transactions in China.

Regarding the facility itself, it is going to be used as a transaction center, but pecuniary institutions and big corporations will be able to take part. The transactions will be made only in the zone. Apart from precious metals, one will be able to store antique, art and other luxury objects. However, when it comes to diamonds, one will have to contact Diamond Exchange. If a precious stone appears in the exchange house, it won't be possible to present it in the free trade zone.

Since this is going to be the first facility of the kind in continental China, a lot of entrepreneurs have no slightest idea of the way it works. Today similar warehouses are located in various corners of the world.

Huan Kaiwen stated that due to a big distance as well as other inconveniences, entrepreneurs would have to consider great risks in the goods value. If foreign banks show interest in purchasing gold, Chinese banks will be able to import precious metals directly into the zone. Various pecuniary institutions, including Bank of China, Shanghai gold exchange and commercial-industrial bank are currently negotiating partnership with the storage facility's owners.

International gold council predicts that due to a sudden decrease in gold value in 2013, consequent gold consumption will increase by 29%, which is going to be the world's record. Investing into gold storing facility will indicate that the demand on precious metals is shifting from Europe to Asia.

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