Saturday, April 25, 2009

The Debts of the Lenders: China Nearly Doubles Gold Reserves

A story bound to make any goldbug happy. Even as the price of retail jewelry falls large institutional buyers like China are stocking up on bullion.

China has quietly almost doubled its gold reserves to become the world’s fifth-biggest holder of the precious metal, it emerged on Friday, in a move that signals the revival of bullion after years of fading importance.

Gold rose to a three-week high of more than $910 an ounce after Hu Xiaolian, head of the secretive State Administration of Foreign Exchange, which manages the country’s $1,954bn in foreign exchange reserves, revealed China had 1,054 tonnes of gold, up from 600 tonnes in 2003.



Anonymous said...

So what? Goldbugs have been predicting this forever.

Gold $5000 by this time next year!

In Debt We Trust said...

I am not a goldbug by any means.

We remain in a deflationary bias. More money has been destroyed than the govts can ever print.


I'm also watching "follow the leader" here w/what the Asians are doing in response to the economic crisis.

Watch Japan and China. Japan continues to suck up to the US and blow trillions of their money buying treasuries - witness the last TIC report.

China is diversifying like mad into currency swaps, barter agreements, and now gold. They do not have the same blinders on as the Japanese leaders do - blinded as they are by a colonial era attachment to the US export markets.

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