Hong Kong Mex bullish for gold, silver?

Update 12:17 pm (Hawaii) From the Bloomberg video above: "China's gold association says Chinese demand for gold may jump 15% this year."

But there's this from a Reuters story: One dealer said strict Chinese regulations kept interest muted.

Reuters: Hong Kong Mercantile Exchange launches gold futures (May 18 2011)

Commodities-Now: HKMEx begins gold trading (May 18 2011)

Hong Kong Merc: From Japan to London
(video) Eric Padden: HKMEx new commodities exchange to open (May 9 2011)

Update 3:04 pm (Hawaii) Game plan for Thursday? My gut says the combination of the bounce off the CME Mafia hijacking (margin requirement attacks), general market oversold level and the US Dollar's momentum stall make for good soil. The fields are fertile for PMs. Sensei Turd has outlined this. SGS has proclaimed it for days. Yet I remain 100% cash.

I look at it like this: 1. If Spot Silver builds its strength, it will be sustainable this time, rather than built on a diet of steroids, muscle milk and candy, 2. Hong Kong has to be a positive in this with its brand-new gold futures trading; how can it be negative, even with restrictions? 3. When I am most negative, that is often when the market or sector goes positive.

So there. I jumped off the USS AGQ today, only to see it rise 3 bucks from my sell point. It could open at 180 tomorrow and run to 200. That would be fine to enter then and let it carry my position 20 bucks or so. It could happen. Maybe not. I'm not a forecaster, just a theorist with a lot of frickin bullet holes in my vest.

As for Spot Gold, that's where I'm also salivating. What happens when you give Asia carte blanche (except for those aforementioned Chinese restrictions) to a commodity that was and is manipulated to the nth degree by the West?

At worst, when Spot Silver and Gold were at lows overnight, I could've and should've bought more physical. When the market opened, I was sound asleep (3:30 am here) and missed a chance to enter AGQ at 170, or EXK at 8.55 or PSLV at 15.70. (Is SLW, 34.73, up "only" 1.2%, going to catch up or what?)

My favorite gold plays, like XG have room to grow. XG showed 10.36 afterhours, then back to 9.46 (closing bell price) and then back to 10.36 on some mysterious buy? Hard to say. But I like XG, NGD, DGP, and the miners etfs — GDX and GDXJ — are still interesting.

Spot Silver is at 35.41 as Hong Kong opened within the past hour. If we see a rocket move from here, public perception will lean heavily on the new gold futures trading there. That can't be ignored.

I'll be watching for lower silver prices tonight, not expecting them. I'd just like to acquire more physical. In the morning, I'm riding the silver train and the gold train, if momentum continues. Top silver plays: 1. AGQ (2x silver etf), 2. EXK. Top gold plays: 1. XG, 2. DGP (2x bull etf). If Crude and/or the Dollar rise too quickly, I'll be ready to jump ship. No way the Fed lets both get out of control again.

Also watching AAPL and LNKD (LinkedIn). The latter could fizzle out quickly, but with so much hedge money on the sidelines, it could be a major toy for daytraders before lunch.

Update 3:34 am (Hawaii) Spot Silver and Gold going BALLISTIC in Asia ... is this the Hong Kong effect?

So much for buying more physical tonight. Dohh.

Update 3:51 pm (Hawaii) Gold futures in Hong Kong were originally planned to open trading in 2009. Did not know this.

"With our launch today, we are well on our way to becoming the world's gateway for commodities trading with China," said Albert Helmig, the exchange's president.

What are the odds that JP Morgan and other banksters are going long gold and silver here to coincide with Hong Kong's debut in gold futures? What are the odds that the FIVE margin hike increases had to be made BEFORE Hong Kong stepped into the gold futures market, lest China go apeshit on the banksters and US Fed? Just some simple questions, that's all.

WSJ: Hong Kong Exchange begins gold trading (May 18 2011)
(video) David Morgan, Eric Sprott on silver (May 17 2011)

More on the HKMEx: Bob Chapman (May 9 2011)