I recorded with Peter Schiff. He thinks about gold the way we do about Bitcoin, and even recognizes gold's inherent inferiority with respect to self-custody.
His opinions on Bitcoin are trash, but hi...
A Chinese gold trading platform has just frozen 19 BILLION $ in assets.
Thousands of investors can no longer withdraw their funds.
The platform is offering 20% compensation of the initial capital.
The platform (Jiewurui / JWR in Shenzhen) is facing a classic run/redemption crisis after gold's rally triggered mass withdrawals.
Founded in 2014 as a legitimate gold trader, the company operated physical storefronts and gained trust through competitive pricing and aggressive social media marketing.
But behind the familiar interface of jewelry commerce lurked a betting mechanism. The platform's "pre-pricing" system allowed users to lock in gold or silver prices for future purchase or sale with deposits as small as 20-30 yuan per gram — creating leverage as high as 40-to-1, compared to the Shanghai Gold Exchange's regulated 14% margin requirement.
https://www.scmp.com/economy/china-economy/article/3341633/chinas-gold-fever-sparks-us1-billion-scandal-trading-platform-collapses
Thousands of investors can no longer withdraw their funds.
The platform is offering 20% compensation of the initial capital.
The platform (Jiewurui / JWR in Shenzhen) is facing a classic run/redemption crisis after gold's rally triggered mass withdrawals.
Founded in 2014 as a legitimate gold trader, the company operated physical storefronts and gained trust through competitive pricing and aggressive social media marketing.
But behind the familiar interface of jewelry commerce lurked a betting mechanism. The platform's "pre-pricing" system allowed users to lock in gold or silver prices for future purchase or sale with deposits as small as 20-30 yuan per gram — creating leverage as high as 40-to-1, compared to the Shanghai Gold Exchange's regulated 14% margin requirement.
https://www.scmp.com/economy/china-economy/article/3341633/chinas-gold-fever-sparks-us1-billion-scandal-trading-platform-collapses
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