I think the significance is the addition to official reserves that were announced a while back. The article points out the difficulty of determining if they are physical or paper, but I'd tend toward physical - it's a Chinese tradition. And to answer your question, probably not a large amount relative to their economy but probably a large amount relative to those balance sheets.
Thanks just came across this... BOC sell physical gold http://www.bochk.com/en/investment/metal/trade.html BOC also have paper trading account www.bochk.com/dam/document/retail/pdf/pmkfse.pdf Some other searching it seems there are just as many Chinese pumpers who would put Maloney to shame lol. And as you point out as with many Asian cultures, Chinese citizens with cash seems to be holding a lot gold, and as they get richer they by more.
Lol they have over 2000 branches that stock and sell gold. If they held 10 ounce each that is 20,000 ounces 600kg. Put I presume each branch will hold more tha 10ounces
@JulieW, I guess Jim Rickard is correct, China is accumulating Gold, so that it secures it economic position during the downturn.
I wonder why they hold gold, and not Australian real estate. I would have thought the latter to be more profitable?
China wants to back it's currency with gold. I do not know if those banks listed there are owned by the Chinese government.
AFAIK, China buys all gold (and gold miners) they can get their hands on. Also that all gold that finds its way into China, never comes out again, probably forever. OC
It seems Jim Rickard is right, he observed that Chinese Govt. is buying and accumulating sneakily to bolster its position with USA, Russia and Germany.
China is the biggest sellers of gold jewllery, and the largest exporters of gold gold jewellery. It's all hyperbole. Australians are the largest single owners of residential homes in New York too, did know that?
http://www.afr.com/real-estate/how-australians-cashed-in-on-brooklyns-brownstones-20150903-gjetwq There is an underlying dislike of Australian in Brooklyn and such as we have bought cheap during the GFC Chinese jewellery private demand and export. Plus a good insight why Chinese jewellery demand is one of few reason that supports gold prices into the future. Unlike any other global economic hiccups, where gold was a good indicator of world economy, I think when China goes into recession gold will go down, as the biggest buy of gold will disappear until they come out of recession. https://www.gold.org/download/file/3290/Chinas-gold-market-progress-and-prospects-EN.pdf
There is a Aussie fund specialist that owns 1100 homes or so last time I looked , but it easy to do privately. great returns.
So what would happens to the Gold price when the Chinese economy enter into recession or no longer in the accumulating Gold phase anymore ?
