Shanghai Futures Exchange to Introduce Gold Contract on Jan. 9

Dec. 31 (Bloomberg) -- The Shanghai Futures Exchange, China's biggest commodity bourse by value, will introduce gold futures on Jan. 9, underscoring the increased sophistication of the nation's financial markets and rising investor interest in the metal.
Each contract will represent 1 kilogram of gold, with the minimum margin requirement set at 7 percent, the exchange said in a statement on its Web site on Dec. 29.

Gold Jumps Once More as Chinese Investors Pile in

In Asia today, China's new gold futures market leapt 14% on its debut, breaking through the Shanghai Futures Exchange's daily price-limit on turnover worth $2.75 billion.The contract size of these new gold futures was earlier set at 1,000 grams – three times greater than first planned – in a bid to deter smaller investors. But one Shanghai futures brokerage told the People's Daily this morning that private individuals have made "mounting enquiries" to enter the Gold Market regardless.The China Securities Journal also reports people queuing up to open brokerage accounts in the east of Zhejiang Province.

--London Gold Market Report from Adrian Ash BullionVault

And so it has begun: The Battle Royale. The Chinese investor vs The PPT. Good bye Plunge Protection Team! Gold and Silver have once again lept higher this evening as the Asian markets open for trading. The Asians have got to love these clowns at the PPT. The COMEX crooks mark the Metal down while the Asians are asleep, and the Asians buy up all they can while the PPT catches it breath. Can you say up the creek without a paddle?

“The Federal Reserve is totally out of it. They’re destroying the currency and driving up inflation, which will result in higher interest rates and a worse economy. We now know the Fed doesn’t understand markets or economics, but is just trying to bail out its friends on Wall Street at the expense of 300 million Americans, nay, of the whole world.”
- Investment Guru Jim Rogers

Gold is no longer “dirt” cheap but it’s not even fairly priced, let alone expensive. I think we’re only in the fourth or fifth inning of at least a nine-inning secular bull market. The difference this year versus this time last year is that we’re likely going to see a change in the leadership of factors. Physical demand and a declining U.S. dollar are likely to take a back seat to geopolitical concerns and the absolute death march of the group or groups who have manipulated the gold price over the years. But make no mistake about it: all four should continue to help drive gold to a four-digit price in 2008.

--Peter GrandichThe Grandich Letter, Grandich Publications, LLC

Please read Peter Grandich's entire essay 2007 Review and Outlook for 2008 here:

http://news.goldseek.com/Grandich/1199895504.php

It's quite insightful.

“We do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system”.
- Fed Chairman Ben Bernanke May 17, 2007

Nice call Ben. The saddest part of that statement is that there were actually people that believed him when he said it. This man should be being picked apart DAILY for uttering this nonsense. George Bush and Henry Paulson had the nerve, the audacity, to stand up in public this week and "declare" the US Economy "fundamentally sound". If the US Economy really was fundamentally sound, do you think the President AND the Treasury Secretary would have to get up in public and declare it so? I wonder how many fools believe their folly this time. The US Economy is driving over a cliff, and the engineers are content to sit back and enjoy the ride. Weeeeeeeeeeeeee! Shock and awe? We ain't seen nothin yet...