Gold Monetized in China – Shanghai gold exchange to allow physical gold as collateral

from Reuters China’s Shanghai Gold Exchange said it will allow physical gold to be used as collateral on futures contracts from Sept. 29, according to a statement posted on its website on Thursday. Physical gold will be permitted to be used for up to 80 percent of margin value, according to the statement. from Reuters The Shanghai Gold Exchange said on Thursday it will allow A-shares, exchange-traded funds and treasuries to be used as collateral for gold trading. The move comes as Beijing unleashes a slew of measures to stave off a collapse in its stock market and restricts trading in stock index futures.

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