China boosted its gold reserves by 76 percent since 2003 and has the world’s fifth-biggest holding by country, said Hu Xiaolian, head of the State Administration of Foreign Exchange.
The nation increased its reserves by 454 tons to 1,054 tons through domestic purchases and refining scrap metal, Hu said in an interview with the Xinhua News Agency today. The amount is more than Switzerland’s 1,040 tons, World Gold Council data show, and is worth $31 billion at current prices.
China has the world’s largest foreign exchange reserves at $1.95 trillion as of March 31, according to state administration data. The holdings have climbed about sixfold in the past six years as the country had record trade surpluses and inflows of foreign investment. Gold prices have almost tripled to more than $900 an ounce from $337.
“Chinese foreign-exchange reserves have absolutely exploded in the past few years,” said Jan Lambregts, head of Asia research at Rabobank International in Hong Kong. “We shouldn’t be surprised that they’re adding a lot of all asset classes. I don’t think they’re shifting away from U.S. dollars into gold.”
Gold climbed to a record $1,032.70 an ounce on March 17 last year and traded 0.9 percent higher today at $912.08 an ounce at 3:18 p.m. local time in Singapore.
April 24th, 2009 at 4:21 am
Say what you want about China but they are not stupid when it comes to finance. Gold will always have value due to it’s scarcity, paper money will not.
Dante Reply:
April 24th, 2009 at 10:43 am
Max Keiser said this would happen!!!! Watch this video from his website!!!
http://maxkeiser.com/2009/03/2.....aljazeera/
April 24th, 2009 at 9:35 am
I would have thought China’s number were even bigger when it came to commodities they are acquiring. Look at the industrial metals, copper, etc. By by dollars, hello anything else with real tangible value.
Mark
April 24th, 2009 at 2:03 pm
If every American committed to buy 1 troy ounce of pure gold in the next year, we could stop this trend and strengthen our own personal wealth. That would be 9,500 tonnes of gold in total, over nine times China’s reserves, and over the amount that the US supposedly holds in reserve.
Freedom Hitman Reply:
April 24th, 2009 at 3:30 pm
Yeap after each American has finished paying off their debts and put food on their table. Im sure they will have a few hundred dollars for a bit of gold left over.
PlutoPorkPie Reply:
April 24th, 2009 at 9:23 pm
Everyone Mainland Chinese person I know has a few gold bars in their bank.
Alex (not Jones) Reply:
April 25th, 2009 at 2:38 pm
Economist Gary North calculates that if 10% of active investors put 10% of their assets into gold the demand would drive gold over $10k/oz.
My family in Denmark – not rich by anyone’s standards has a safe full of gold bars. My wife family in China has the same. The last time I visited I saw at least 25 ounces
Jimbo Reply:
April 26th, 2009 at 5:52 am
Same here, I have about 17 ounces of .999 gold coins, plus a few Krugerrands and American Eagles. And over 120 ounces of .999 silver.
April 24th, 2009 at 4:04 pm
well i have 4oz so y not 1/4 of every American buy 4oz?
April 24th, 2009 at 5:57 pm
silver
Alex (not Jones) Reply:
April 25th, 2009 at 2:35 pm
silver is the sleeper metal. If Gold goes up 2-3 times silver is likely to go up 10 or more times.
a 90% silver quarter still has the same buying power or better as it did in 1964 and prior.
April 25th, 2009 at 2:34 pm
so far the dumb ass Americans are still buying TIPs and other worthless securities hawked by propagandists like Cramer and the other half-wits.
When the dollar crashes – and there is no avoiding it anymore that window closed 6 months ago – we wil all be effectively bankrupt. The only bright spot is then maybe the stupid asses in this country will turn off the TV and go do something about it.