I have heard that China is increasing its gold reserves by more than 7,000 tons. Does anyone on here have any references for that? And it is being reported that they are no longer paying for the gold in dollars.
Nope, haven't heard that but it doesn't really surprise me. Gotta stay wealthy after the US currency is worthless somehow! I mean hey, that's why WE have all our gold, right? We should invite China to sign up on our boards.
Of course they are. China is on track to economically take over the world, starting with the United States. Any smart government though stockpiles what they can.
If China is doing so then it is a great move of the country in becoming economically very strong in the world.
As far as I know, China's gold reserves are worth only around $40 billion. That is equivalent to around 1,000 tonnes. No need to worry about this, as the US is having estimated reserves of more than 9,000 tonnes in comparison. Germany, Italy and France are also having gold reserves much bigger than that of China.
The problem with China being a highly locked-down country, is that they could be heavily mining their own gold reserves and stockpiling that without reporting it. The assumption would be that they don't have a massive stockpile because they haven't been buying. If they do it right, they don't have to, and could be amassing quite a stockpile. Complete speculation though, as most everything regarding China is.
Gold mining can't be kept as a secret. China is having a few gold mines, but most of the gold id imported. As you said, there is a chance that China is secretly amassing all the gold, but in actual reality it is quite difficult to do so. And I don't think China will be able to surpass the US in terms of gold reserves anytime soon.
Perhaps, but it'll be a bumpier road than some expect. China is overextended and vulnerable to a decrease in demand for its exports. More recession in western nations could be catastrophic to their economy.
If this is true, it would make a lot of sense. China has one of the strongest economies right now in this global economic meltdown. With that being said, China purchasing mass amounts of gold is not completely ridiculous. Now them doing so secretively, I'd have to agree with vest in the fact that that is more than likely implausible.
Can you blame them? They've bought a lot of American debt and while they may still be profiting through their cheaper goods, it's a good idea for the country to diversify its portfolio...just in case. I must say though that one thing that has really impressed me about China is the way that they have managed their resources and their economy. Just looking at the moves they've made I'm thoroughly convinced that they have an economist (or several) advising them right now. So on point. If I had to bet on which nation will come out the best after the next financial catastrophe I know where I'd be putting my money.
I am not surprised. They do not trust are phony fiat dollars and it is only a matter of time until they start dumping or stop buying our bonds. They are so much smarter than most countries. As the US has no silver in its reserves and a very small amount of gold.
I haven't heard about this personally, but it makes sense. They have subsidized and keep heavy controls on exports of other precious metals, and especially rare earth metals. Having the world's largest supply of them, they're careful to let resources go that are more stable than the dollar.
Definitely makes sense. By attempting to corner the market and NOT pay USD, they are only manipulating their extreme wealth. Although a future where China is the world's superpower is scary, it isn't too farfetched.
Sounds like it's a good time to seriously consider learning the Chinese language then. When China becomes the new global economy powerhouse, it would be useful to be able to communicate with them in their language.
