Mark Moss explains how major Chinese banks including ICBC, Ping An, and China Construction Bank are restricting retail access to paper gold trading. Over four months, they've coordinated an exit, forcing retail customers to sell positions, close into other instruments, or take physical delivery instead.
The biggest bank on Earth posts a notice: as of July 24th, individual customers are done trading gold contracts through the bank. The biggest bank on Earth said you can't do that and we can't trade gold contracts. So you have 3 options. Either 1, you can sell, just get rid of everything. 2, close your positions, take something else. Or 3, take physical delivery of the metal. Okay, we're going to be following this trend quite a bit. Now, the ICBC, they weren't the first one, all right? If you check out the sequence of how this has all been laying out and going through, we've seen Ping An, we see this right here. Ping An Bank was the first one, started April 1st. Then we had the Postal Savings. This happened in June. Then we had the China's Bank here, pre-June. The China CITIC was pre-June as well. And now all of this is happening— the ICBC, China Construction Bank, Bank of Communications, and then China Merchants right behind them. What this means, what this shows right here, is 8 of the biggest banks in the world all coordinated exit within 4 months.
