DGC Blog

China’s Precious Metals Holding Are Moving Up

When I saw the headlines about China ‘secretly’ stocking up on gold the past 6 years or so and now announcing they have over 1000 tonnes I was not surprised.  I would have thought their number would be much bigger. Personally, I expect to see China match or come close to US sized reserves in the next two years. (that just my opinion)

Reading the GATA web today took me to Seeking Alpha.

World Gold Markets: How Lack of Transparency Translates into Poor Analysis by J. S. Kim

Ultimately, I suspect that China’s actual gold holdings of 1,054 tonnes, up from their last reported figure of 600 tonnes, are in reality, significantly higher than this amount (as this figure still only represents a tiny 1.6% of their overall reserves). Though I can only speculate about the timing and nature of China’s recent gold revelation, I believe that China made this revelation to “test the waters” and observe the impact of their announcement on gold markets. Ultimately such a revelation, even if it does not fully disclose China’s true gold position, will significantly assist its final determination of its end target percentage of gold reserves.

Furthermore, I am confident that China has not only been secretly supplementing their gold reserves, but that they have also been very quietly adding significantly to their silver reserves, their petroleum reserves, their agricultural reserves and their reserves in base metals.