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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.
Source:
http://www.ft.com/cms/s/0/
1d23f80c-30aa-11de-bc38-00144feabdc0.html
2 comments:
So what? Goldbugs have been predicting this forever.
Gold $5000 by this time next year!
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.
BUT...
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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