China's $3.3 Trillion FX Reserves Could Buy All World's Gold Twice

[Holdfast]

China's foreign currency reserves have surged more than 700% since 2004 and are now enough to buy every central bank's official gold supply -- twice.

The Bloomberg CHART OF THE DAY shows how China's foreign reserves surpassed the value of all official bullion holdings in January 2004 and rose to $3.3 trillion at the end of 2012.

By comparison, China's reserves rose 721% through 2012, while the combined total among Brazil, Russia and India rose about 400% to $1.1 trillion

http://news.goldseek.com/GoldSeek/1362402000.php

http://67.19.64.18/news/2013/3-gc/3.png

 

[C.H.]

Noticed how it virtually stopped growing since 2011?
It's not like they don't have a trade surplus since then.
Hint: they're buying something with that money.

 

[Old Codger]

One thing they are not buying much of is US Treasury Bonds.

 

[Dogmatix]

Gold at current prices is worth small $$ compared to other global assets.

An Apple or a Google could be traded for similarly high amounts of money.

On a practicality note however, for China to buy all gold is essentially impossible - they would run out of money as the price rose to meet demand. They'd probably be lucky to double their current holdings, and even luckier if they avoided a war in the process.

Perhaps I am good at missing the point

 

[hussman]

enough to buy every central bank's official gold supply -- twice.

But it couldn't be if they literally attempted to buy that much (because the price would rocket higher).

SSSSHHHH!!! You'll ruin the ponzi scheme for everyone then.

 

[Caput Lupinum]

So they just buy a bit at a time slowly and quietly in dips whilst it's still being suppressed

 

[Silverthorn]

So they just buy a bit at a time slowly and quietly in dips whilst it's still being suppressed

takes tin foil hat off.

maybe the US has an agreement to keep the price low so they can have free rein to print without reprisal.

 

[Silverthorn]

So they just buy a bit at a time slowly and quietly in dips whilst it's still being suppressed

takes tin foil hat off.

maybe the US has an agreement to keep the price low so they can have free rein to print without reprisal.

lol. they be sprung the gigs up. to da moon.

 

[errol43]

Panda! Panda! Slowly! Slowly! Catch the Monkey!

Give them time and the Panda will own all the gold!

Regards Errol 43

 

[hyphenated]

Preview the press announcement:

For the last two years, China has, in greatest secrecy, and working to subvert several large banking cartels, succeeded in cornering the World market in Cabbage Patch Dolls...