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Everyone who follows precious metals knows that this new number is bullshit. The worlds leading gold experts have been estimating that China’s gold holdings to be in the 10,000 to 30,000 metric tons range. It’s been long believed that when China reports their true gold holdings that the price of gold will skyrocket thru the roof because it will expose the fact that all of that gold flowed from western central banks and there is no gold left in the U.S. It’s pure math, I just read yesterday that between Russia, India, and China, they have been buying up more than the annual world mine production of gold. Where is the gold purchased from the rest of the world coming? It’s pure math. This would expose the fraud. Obviously China is not done aquiring more gold at western suppressed prices below production costs. When they can’t get any more gold and they report their true holdings…it’s game over!
A82EBA
Yes, a lot. Great point.
On May 29 I bought ten 1oz rounds at spot price $16.70 and the check I wrote was $107.
Today, at spot $15 (10% lower) the total is $177 (65% higher)
Bokkenrijder
Look at the timing: the Chinese stock market is selling off, the Chinese housing bubble is deflating and ‘growth’ (7% according to the Chinese themselves, haha!) is coming to a standstill.
IMHO this is purely a domestic move in order to brainwash the Chinese people to have confidence in their central planners. “Don’t worry about stocks and housprices: your government knows what it’s doing and has increased it’s gold reserves.” As an unwelcome side effect however, the Chinese people will probably start to copy their government and buy more gold which will drive up prices.
So by releasing this ‘official’ number, the Chinese government may have shot itself in the foot if they want to continue to accumulate gold at relatively low prices.