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<p>[QUOTE=&quot;John the Jute, post: 628492, member: 17740&quot;]I think Elaine&#039;s referring to another thread from a couple of weeks ago:</p><p>&nbsp;</p><p><a href="http://www.cointalk.com/forum/t57320/" class="internalLink ProxyLink" data-proxy-href="http://www.cointalk.com/forum/t57320/">http://www.cointalk.com/forum/t57320/</a></p><p>&nbsp;</p><p>As I said in that thread, I believe that the $80 billion figure just doesn&#039;t hold up to some simple arithmetic ... not in any immediate timeframe.</p><p>&nbsp;</p><p>In that thread, Farmer suggested that China was holding back one quarter of its gold output--750 tonnes a years--to rebalance its reserves. That strikes me as a much more credible figure. At that rate it would take them about 33 years to assemble 2500 tonnes of gold, worth $80 billion at to-day&#039;s prices.</p><p>&nbsp;</p><p>That rate of rebalancing would gradually reduce China&#039;s dependency on the US dollar; it would put some sort of floor under the gold price; but it would not rock the currency boat alarmingly ... which China cannot afford any more than anyone else.</p><p>&nbsp;</p><p>Later,</p><p>&nbsp;</p><p>John[/QUOTE]</p><p><br /></p>

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