Sunday, March 11, 2012
Shanghai Silver Exchange
They are currently China's only officially designated exchange group on the silver market and is supported by the Chinese Commercial Federation, the Chinese Chemical & Mineral Trade Federation, the Gold and Silver Branch of the Chinese Association of Non-Ferrous Metals, the Chinese Non-Ferrous Metals Information Center, the Electrical Alloy Branch of the Shanghai Electricity & Science Research Center, the municipal government of Hunan Province's YongXing County, YongXing County's Gold & Silver Association, and Shenzhen Gold, Pearls and Jewelry Trade Association.
The Silver Institute engaged in a China Markets Development Program recently interviewed the CEO of the Shanghai Silver Exchange, Mr Gao Huijie, during a delegation hosted by the Silver Institute. In the interview Mr Gao stated, “The Shanghai White Platinum and Silver Exchange has been designated a spot silver market by the Chinese government. Essentially, we do the following:
a. We fix the price for the spot market. Our price affords a broad overall view of the industrial supply and demand in China. Over 1,500 firms, including miners, refiners, manufacturers and retailers, purchase or sell silver according to our price. We have our own Silver Delivery List of certified brands of silver bars that can be delivered in our market. Many refiners have come to us for their brands to be listed.
b. We provide an electronic platform for our members to buy and sell silver. We have both one-month and one-week contracts.
He also stated that they are one of the primary sellers of silver in China.
China is not just the third largest miner of silver but is also the third largest user of silver in the world. Chinese investors are more and more choosing to buy silver as a way to preserve their assets.
In conformance with Chinese Contract Law, Standard GB/T4135-2002, and Bulk Stock Electronic Transaction Specification, WPSE organizes all silver electronic transactions. In the online commercial network of WPSE, enterprises are able to develop contracts, determine delivery dates, and arrange for the shipment and reception of products. WPSE provides a comprehensive business platform for domestic buyers and sellers of silver in China.
The online booking trade for silver includes two forms: monthly trade and weekly trade. Both the buyers and the sellers are able to sign contract, make payment and get the goods through the online trading platform on site.
The monthly trade has the biggest trading volume and the longest time of implementation. Enterprises can make the payment on the determined price on whatever day within the next 6 months to purchase spot silver, and get the delivery and quality guarantees. In this way, enterprises will be able to control the material cost and improve the sales profit. It is favored by many traders since its implementation.
The weekly trade is tailored to investors and traders after researching on the periodic supply and demand characteristics. The traders quote, deal and signed contracts through the online trading system, and make the delivery or get paid within one week. It can shorten the trading period and meet the demand of various enterprises every week.
They also promoted an "online bidding" mode for participants to stimulate the market atmosphere, which incorporated many modern elements. After the sellers has offered a bid and put the selling instructions on the trading platform, the buyers can search for the items needed, make his bid, then deal it under the rule of "Time and price priority".
Exchange and transfer of warehousing bills online
In order to develop the supply and demand situation of warehousing bills for spot silver, the Shanghai Silver Exchange also promote a brand new system to exchange and transfer warehousing bills as well as selling the bills on behalf of the traders. The warehousing bills are the bills obtained from the traders in the weekly untransferable market.
Enterprises who want to purchase silver can submit the information of "I want to purchase silver" and the system will then collect information and show the sorted feedback. Enterprises can also use the telephone to make price inquiries.
There is an extensive site in Chinese of course with a translation on line in English from which much of this data is obtained.
There are a lot of Chinese interested in buying silver and the The Shanghai Silver Exchange seems to be one of the best ways to buy silver in China.