Monday May 25, 2015, 9:42am PDT
Xinhuanet reported that a gold sector fund was set up this past weekend during an investment and trade forum in Xi’an, China. The fund will be led by the Shanghai Gold Exchange (SGE) and is expected to raise US$16.1 billion over three phases.
As quoted in the market news:
"About 60 countries have invested in the fund, which will in turn facilitate gold purchase for the central banks of member states to increase their holdings of the precious metal, according to the SGE.
'China does not have a big say in gold pricing because it accounts for a small share of international gold trade,’ said Tang Xisheng of the Industrial Fund Management Co. ‘Therefore, the Chinese government seeks to increase the influence of RMB in gold pricing by opening the domestic gold market to international investors.’
According to Tang, the fund will invest in gold mining in countries along the Silk Road, which will increase exploration in countries such as Afghanistan and Kazakhstan.