That is correct, in five years China has not mined nor imported any gold. They've trusted the USD all along. There's an old saying in Sydney, I know it's in Melbourne, probably in Sydney that says, fool me once, shame on shame on you. Fool me you can't get fooled again.
Just goes to show what the Chinese are capable of, even the most obvious lie possible is presented as fact. Even the 1000+ tons start figure is probably BS. File under, PRC Economic Data! (my 5000 tons estimate still stands) OC
I read somewhere recently that Chinese gold mines are digging up the stuff for well over $2000 an ounce. That means they are willing to bear that cost because they know very well that in a year or three, $2000 will be CHEAP! If I were them i would hand over $2000 worth of US Treasuries for $1000 worth of gold. JMO OC
Jim Rickards says there might be 4,000 tonnes of gold that are held by China. He also thinks some gold standard may emerge. I wouldn't be too surprised, since the BRICS form a more powerful group than the USA and the EU (on the long term certainly) and they might become the "bosses" of the new financial system. ...while the West slowly sinks!
Well all that gold China has been importing and mining over the last 5 years must have been lost in a terrible boating accident. I guess what it does mean though is that China is still in accumulation mode and is in no hurry to announce the real figures and why would they. No better to keep everyone guessing and give no real support to the Gold price. China must really love Goldman Sac and Co for helping to drive down the price of Gold. Who knows how long this accumulation mode will continue but it does help us to accumulate at lower prices as well.
If I was the boss in Beijing, I would not stop accumulating until there was little or nothing more to buy. If the REAL purpose is to back a Reserve Currency, and I believe that is so, then to have 10,000 or even 20,000 tons, would make it so much stronger. As I have said before I would swap $2000 worth of US Treasuries for $1000 of gold at every opportunity. Not sure how many takers they would get, maybe our RBA for one. OC
This person has been saying a lot of late although his comment of a Gold standard says to me he's full of it. I find it ironic that China has a lot of Gold and under reports their holdings while the US has no Gold and claims the opposite.
I for one welcome our chinese over lords... A country that is backed up by gold is the new roman empire.
The demand shock I think means a reduction, if gold was being bought with credit (which I don't think there was a lot of but the picture is murky). I think some (like Zero Hdge) have pitched it as demand + price positive on the wrong idea that somehow the hypothecated gold needs to be bought to repay the loans - nope, they just default and go bankrupt.
