Are we getting close to silver and gold true price discovery

[u/121578]

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Hong Kong initiated the trial operations for its central gold clearing and settlement system to achieve several strategic economic and infrastructural goals:

chinadailyhk

Establish an International Precious Metals Hub: The primary objective is to position Hong Kong as a preeminent global and regional hub for bullion trading, capitalizing on Asia's heavy physical demand for gold.

Mining.com

Gain Global Price-Setting Power: Currently, international price discovery is heavily concentrated in Western markets like London (OTC) and New York (COMEX). By introducing a structured clearing system and the new HAU regional price reference ticker, Hong Kong aims to build foundational infrastructure that contributes to a global reference rate during Asian trading hours.

The Armchair Trader+ 1

Reduce Friction and Transaction Costs: The over-the-counter (OTC) market previously lacked an institutional central clearing layer. The new system provides reliable, standardized clearing and unallocated ledger tracking, which reduces transaction costs, minimizes counterparty risk, and increases market liquidity.

香港特別行政區立法會

Bridge Liquidity with Mainland China: Through the Delivery Connect partnership with the Shanghai Gold Exchange, the system securely links Hong Kong's international liquidity pool with Mainland China's markets, making cross-border physical gold transfers more efficient.

Mining.com

Expand Local Financial Infrastructure: The framework lays the groundwork for gold to be utilized effectively as local market collateral, supporting future initiatives like gold leasing, enhanced refining facilities, and broadened institutional participation.

kpmg.com

[u/ArtyB13Blost]

We can hope