Golden precious metals exchange to open in China

China is set to begin a new trading scheme for precious metals that will allow traders to exchange gold for platinum, palladium, and rubies.

The country is also poised to join a group of emerging markets that are set to launch gold-based products.

The exchange, which is still in the early stages of development, will allow the country to trade the world’s most valuable metals at prices comparable to those of gold, silver, and platinum, according to Bloomberg News.

The new gold-linked products will not be tied to the yuan or other currencies, and will be priced at a “fair market value” according to a press release. 

“This is the first gold-market exchange that will benefit the Chinese economy, and the country has an opportunity to set the standard for other emerging markets,” said Charles Chen, the president of GoldShares, a London-based company that is investing in the new gold exchange.

Gold and silver are the two metals most closely held by China’s elite.

The two metals have long been coveted by investors in the country, who have sought to make use of their scarcity for speculative purposes.

China’s central bank, the People’s Bank of China, recently announced a ban on gold, which has resulted in a sharp drop in the value of the precious metal.

The new gold scheme will allow Chinese buyers to get gold for less than it would be worth on the open market, which could be a major boon for the Chinese market, according a report from Bloomberg.

The exchange, set to open this year, will be operated by the China Gold Exchange Group and will offer two types of gold products: a gold coin, or a coin that features a gold eagle, and a gold medal.

The gold coins will be sold at a discount, Bloomberg reported, and “gold-based precious metals will be listed at a higher price than gold coins.”

The Chinese government has already been working on a similar scheme for gold, but the yuan is the preferred currency for most transactions.

The move to open a gold-focused exchange comes amid fears that China is heading toward a deflationary crisis.

Gold futures for June delivery dropped below $1,400 an ounce for the first time this year amid fears of a possible “gold rush” as the yuan depreciates, Bloomberg News reported.

Gold markets are expected to fall even further in 2018.

China is expected to officially ban gold bullion from the national economy as the country seeks to stabilize its economy.