Chinese Official: China should increase its gold reserves
If you have not already looked into this – the idea of China increasing its gold reserves is nothing new.
Gold Reserves By Country – Top 10 Chart
In order for China to catch up to the USD or Euro, it would have to add on the order of 6000 to 7000 additional tonnes to its gold reserves.
According to Jim Rickards, China has made it known through official channels that it intends to buy at least 3000 tonnes.
The WGC has estimated that China will start to deplete its mines within 6 years, so even if China bought all of its domestic production, there is still a substantial shortfall.
I fully expect China to have to turn to the world market to satisfy its requirements, which will translate into additional demand in the marketplace and a higher gold price.
China should use more reserves to buy gold-researcher
BEIJING, April 17 (Reuters) – China should use more of its massive foreign exchange reserves to buy gold to support its aim of raising the international role of the yuan currency, a senior government researcher said on Saturday.
Li Lianzhong, who heads the economic department of the Communist Party’s policy research office, said that Beijing should also encourage domestic enterprises to acquire foreign energy and natural resource assets by using part of the foreign exchange reserves.
“We can also consider buying some more gold because if we want to develop the RMB into an international currency, we must have some scale of gold reserves,” Li told a forum in Beijing. The yuan is also known as the renminbi.
China’s foreign exchange reserves, the world’s largest, rose to $2.4471 trillion by the end of March.
China disclosed last April that its official gold holdings had risen to 1,054 tonnes from 600 tonnes in 2003, confirming years of speculation it had been buying.
But gold is still a small portion of its huge foreign exchange reserves, which are mostly invested in dollar-denominated assets.
The tumbling U.S. dollar has threatened to weaken China’s buying power, fuelling a debate that the world’s third-largest economy should diversify into gold, oil and metals. (Reporting by Aileen Wang and Jacqueline Wong)
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