China Gold Reserves Jump on Release of New Figures

Asian countries have been increasing their gold reserves this decade as European and IMF holdings have been neutral or reduced. There has been talk since early last year of the IMF selling 403 tons from their 3,217 ton reserve as part of a plan to close the Washington-based lender¡¯s annual deficit according to Bloomberg.

Suggestions that China is seeking to diversify away from the US dollar to undermine the dollar¡¯s position as a reserve currency have been dismissed by most commentators as unfounded but various Chinese departments have used revenues to buy hard assets such as metals, mining assets, equities and a gradually more diversified basket of currency holdings in a move seen more as an attempt to spread risk in the light of global uncertainty.

China¡¯s purchases of gold may have contributed in some part to the metal¡¯s strength over the last year or so. Normally, a strong dollar would result in a weaker gold price but gold has held up remarkably well as other metals have declined as noted in a forth-coming MetalMiner white paper due out this week. China is the world¡¯s largest producer and although no data is currently available as to what price SAFE paid for the increase reserves there are suggestions (admittedly by their own Gold Association so treat them with caution) that China should increase its holdings from 1,054 tons to 5,000 tons. Be that as it may it appears at least to be a long term strategy to buy and hold gold reserves.

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.