Perth Mint Appointed as Member of Shanghai Gold Exchange

Traditionally, the special economic zone in Hong Kong has served as mainland China's most important gold hub. However, the Shanghai Gold Exchange (SGE) has grown in clout and has increasingly drawn international recognition since it went global in 2014.

SGE first emerged in 2002. Even today, it is chartered by the Communist Party and essentially operates as a subsidiary of China's central bank, the People's Bank of China. As the Chinese market (and, of course, the state) has become the world's largest consumer of gold, it makes sense that the country's premier bullion exchange would see rising trading volumes, throughput, and global prestige.

Attracting International Partners

In addition to the IMF including the Chinese renminbi (yuan) in its basket of currencies used for the special drawing rights (SDR) reserve currency, the People's Republic now also oversees crude oil futures trading denominated in yuan. Both of these achievements serve to legitimate Beijing on the world economic stage, and the growing acceptance of the Shanghai Gold Exchange as a major international player is part and parcel with this broader strategy.

Perth was the first foreign gold refiner approved by SGEI in 2014. That makes perfect sense partly because of Australia's geographic proximity to China, but it also speaks to the rich history of Australian gold production dating back to the 19th century.

Now, much like five years ago, Perth Mint has been named the first foreign firm to officially partner with the SGE itself (rather than just its international arm). The news was lauded in the Australian press and undoubtedly will help solidify a cross-cultural relationship between the two countries that was already very strong.

Read More About Perth Mint

The Perth Mint

Each and every day—seven times per day, in fact—the mint puts a bit of its refining prowess on display for tourists and visitors.

It recasts the same hefty gold bar weighing over 200 troy ounces right in front of the public. The mint has dutifully stuck to this edifying practice for the past quarter-century. That adds up to over 65,000 times this gold bar has been "reborn"!

Not only does Perth Mint continue to be a key player in the global bullion industry, but Australia's robust gold mining sector also shows no signs of slowing. Given China's voracious demand for gold each year, the partnership with the SGE looks to benefit both parties.

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