Seems anything relating to Russia is headline #1 in the news these days – will it ever get old? And be sure, gold news is no exception to this. About 10 days ago, Russia held their annual Russian Bullion Market conference. The big story was an announcement by a top Russian finance official about discussions to set up a long-planned (or long-threatened) gold trading market between the BRICS countries.
Presumably, the purpose of this would be to allow Russia, China, India et al to trade gold between themselves without having to involve meddlesome Western governments like the US or EU. This is actually very important, as two of these countries (Russia and China) are the world’s two largest consumers of gold right now. Also, 3 of these countries are among the world’s biggest producers of gold (China, Russia, and South Africa).
You’d think this plan would take volume off the established London, Singapore and New York exchanges. What would the effect be on gold prices and trends? We can’t really be sure yet, but this Gold Enthusiast thinks it might help reveal any possible market manipulation attempts in the London and New York markets. You can read more about it here.