8:50 am (Hawaii) Shanghai planning a silver futures instrument. This comes after Hong Kong opened its gold futures instrument last week. Does this mean more paper manipulation? Or is this truly bullish for precious metals? I think it's both. Traders and investors who want to hedge their physical holdings can ride these instruments up and down the way we do in the West with the CME Mafia. The exchanges, no matter where they're located, are about making money. They don't make as much when people simply buy physical. It's the leverage and wipeouts and huge moves up or down that they thrive on. China sees how JP Morgan has taken traders for a wild goose chase and realizes, well ... ka-ching!
Are the puppetmasters in China afraid of upsetting the masses? Probably. But that won't stop greed from entering the marketplace, if it already hasn't by now.
Capital Vue: Shanghai Futures Exchange plans launch of silver futures (May 23 2011)
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