China gold reserve rise to 1054 tons

[danmand]

http://www.reuters.com/article/marketsNews/idUSN2438948420090424

NEW YORK, April 24 (Reuters) - China's confirmation that its gold holdings have risen to 1,054 tonnes was not surprising given the broad rise in all the country's reserves, John Lipsky, first deputy managing director of the International Monetary Fund, said on Friday.

"Not so surprising considering the very rapid increase in the overall level of Chinese external reserves, that it probably increased its holdings of all forms of reserves," Lipsky said when asked whether China would be in the market to buy 403 tonnes of gold owned by the IMF.

The IMF last year approved the sale of 403 tonnes of gold from its stocks of 3,217 tonnes (103.4 million ounces) as part of a plan to put its finances on a sounder footing and create an endowment with the proceeds.

China revealed on Friday it had secretly raised its gold reserves by three-quarters since 2003, increasing its holdings to 1,054 tonnes, confirming years of speculation it had been buying. [ID:nPEK307477]

Selling IMF gold requires ratification by the legislatures of member countries, including the U.S. Congress, a process that is expected to take at least several months. (Reporting by Frank Tang and Lesley Wroughton; Editing by Walter Bagley)

 

[Tony321]

That explains why when countries were selling gold from their reserves, the price of gold didn't go down. China was just buying all the gold they could lay their hands on and is now calling for a commodity money instead of a fiat currency. I won't be surprise if Russia is also increasing their gold reserves.

 

[friendz4evr]

That explains why when countries were selling gold from their reserves, the price of gold didn't go down. China was just buying all the gold they could lay their hands on and is now calling for a commodity money instead of a fiat currency. I won't be surprise if Russia is also increasing their gold reserves.

That is why you should always have gold (mining shares, ETF) in your portfolio.

 

[Tony321]

That is why you should always have gold (mining shares, ETF) in your portfolio.

I have shares in YRI, ELD, IMG and HGU. I love gold stocks.

 

[chrispalen]

Very smart move by China. They are holding a lot of USD which is bound to go down in value. Wise to reduce their exposure to US treasury bills and hold more gold. They are buying all kinds of commodities and buying up Australia on the cheap.

CP