This article nicely dovetails with our recent interview with Eric King where it was mentioned that there exists the real potential for China to increase it gold reserves from near 2% to closer to 10% of its total overall reserves.
David Hale actually goes further than the scenario we were outlining where we were talking about them perhaps acquiring a bit more than 5,000 tons.
Apparently that is a bit too conservative.
Either way, it continues to reinforce the idea that the Asians are on the prowl for the yellow metal.
CAPE TOWN (miningweekly.com) – China’s central bank is being advised to increase its gold holdings nearly tenfold to a level greater than the world’s biggest bullion depository, the US’s "Fort Knox".
Global economist David Hale, who addressed the packed Mining Indaba in Cape Town attended by a record 5 700 people, says that China’s gold reserves are currently at 1 050 t – only $30-billion to $40-billion compared with the country’s total assets of $2,8-trillion
http://www.miningweekly.com/article/david-hale-2011-02-09
Dan,
ReplyDeleteJim's comment on this story was:
"This is easy. China only needs one ounce to accomplish this."
He thinks all the US gold is gone? To where?
Jim Rickards certainly doesn't think the gold is gone - he refers to the US a "gold superpower":
http://outerdnn.outer.jhuapl.edu/rethinking/VideoArchives.aspx#rickards
The US claims to be holding over 8000 tons of gold but no one really knows what we have since we cannot get an audit from a disinterested third party.
ReplyDeleteOne of the things about this story is that it continues to serve as a reminder of how relatively low a level of gold in their reserves the Chinese actually have. I think it is now a given that they are going to substantially increase those holdings and that will make them active in the gold market should price descend lower.
Thanks Dan
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