Quote "George Milling Stanley of the World Gold Council would seem to support this premise. He has been reported as saying: "China has been buying local gold mine production and the production of local refineries - whether that is by-product gold or recycled gold - for a number of years... They have been gradually building gold reserves, not by cashing in dollar assets which might upset the dollar market but they have been quietly doing it by buying local gold production". But why be so circumspect in the announcement of reserves? The main factor is that confirmation of a substantial increase in Chinese reserves would almost certainly lead to a big jump in the gold price. A big gold price rise is seen in many financial circles as an effective devaluation of the dollar - and China holds trillions of dollars in its reserves. This is also the reason China did not snap up the IMF gold which was on sale. An overt purchase of a substantial amount of the IMF gold by China would, the Chinese judged, have had a very sharp impact on the gold price." https://www.kitcomm.com/showthread.php?t=73341
However, from a news report dated March 31, 2010. The entire article is an interesting read if you haven't already come across it. There are a few sources for this story, here is the one I quoted from. http://news.coinupdate.com/imf-refuses-to-sell-gold-it-claims-is-available-0210/
Interesting, Western countries selling off gold to finance debt repayments. China doing the opposite. Dollar value continues to erode to the true wealth, Gold bullion. China holding trillions of US currency? What will happen next? They can't use cash to pay for Bullion. Unsettling, would create a run on PM's & erode the dollar even further. Then curiously it starts to look like a good scenario for the West. China is between a rock & a hard-place. Gives the West some breathing space, a chance to rebuild. The sensible focus would seem to be on driving exports. Holding China to some kind of trading balance? We are hungry for manufactured plastic goods, they are more interested in commodities.
