China Gold Demand Voracious - Chinese Yuan Gold Standard?
ksammut
Posts: 1,074 ✭✭✭
China Gold Demand Voracious - Chinese Yuan Gold Standard?
Enter the Chinese Gold Dragon
Overnight, UBS confirmed in a Bloomberg article that China alone imported a massive 200 metric tonnes of gold in just the first two months of 2011. This gold is being bought by China’s 1.3 billion people in order to protect against surging inflation (see news).
The FT last week quoted a senior executive of the world’s largest bank by market capitalisation Industrial and Commercial Bank of China Ltd. (ICBC) about the “voracious” appetite for gold in China. ICBC bank has in some two months opened gold savings accounts for more than 1 million savers with more than 12 tons of gold stored on their behalf.
Shopping malls in China are experiencing massive buying of gold jewellery and ingots as shoppers buy gold as a store of wealth in order to protect against surging food and energy inflation. Statistics from Beijing Caibai, Beijing’s largest jewellry store, show sales of gold bars and jewellry have totaled an incredible 4 billion yuan or about $600 million US dollars so far this year, a 70-percent increase year-on-year (see news).
This demand is only the demand from Chinese investors and savers. It does not include purchases by the less than transparent People’s Bank of China who are almost certainly continuing to diversify their massive nearing $3 trillion currency reserves into gold bullion in order to protect themselves from their massive dollar ($1.6 trillion dollars of US debt alone, according to the Treasury Department) and other currency exposure.
Chinese Yuan Gold Standard
China is clearly trying to position the yuan or renminbi as the alternative global reserve currency. The Chinese likely realise that they will need to surpass the Federal Reserve’s official, but unaudited, gold holding of 8,133.5 tonnes. China is the sixth largest holder of gold reserves in the world today and officially has reserves of 1054.1 tonnes which is less than half those of even Euro debtor nations France and Italy who are believed to have 2,435.4 and 2,451.8 tonnes respectively.
China’s ambitions to rival and even supplant the dollar were seen overnight with news that China is to allow all exporters and importers to settle their cross-border trades in the yuan this year. The People’s Bank of China said that it was “part of plans to grow the currency's international role” and “would respond to overseas demand for the yuan to be used as a reserve currency.”
Enter the Chinese Gold Dragon
Overnight, UBS confirmed in a Bloomberg article that China alone imported a massive 200 metric tonnes of gold in just the first two months of 2011. This gold is being bought by China’s 1.3 billion people in order to protect against surging inflation (see news).
The FT last week quoted a senior executive of the world’s largest bank by market capitalisation Industrial and Commercial Bank of China Ltd. (ICBC) about the “voracious” appetite for gold in China. ICBC bank has in some two months opened gold savings accounts for more than 1 million savers with more than 12 tons of gold stored on their behalf.
Shopping malls in China are experiencing massive buying of gold jewellery and ingots as shoppers buy gold as a store of wealth in order to protect against surging food and energy inflation. Statistics from Beijing Caibai, Beijing’s largest jewellry store, show sales of gold bars and jewellry have totaled an incredible 4 billion yuan or about $600 million US dollars so far this year, a 70-percent increase year-on-year (see news).
This demand is only the demand from Chinese investors and savers. It does not include purchases by the less than transparent People’s Bank of China who are almost certainly continuing to diversify their massive nearing $3 trillion currency reserves into gold bullion in order to protect themselves from their massive dollar ($1.6 trillion dollars of US debt alone, according to the Treasury Department) and other currency exposure.
Chinese Yuan Gold Standard
China is clearly trying to position the yuan or renminbi as the alternative global reserve currency. The Chinese likely realise that they will need to surpass the Federal Reserve’s official, but unaudited, gold holding of 8,133.5 tonnes. China is the sixth largest holder of gold reserves in the world today and officially has reserves of 1054.1 tonnes which is less than half those of even Euro debtor nations France and Italy who are believed to have 2,435.4 and 2,451.8 tonnes respectively.
China’s ambitions to rival and even supplant the dollar were seen overnight with news that China is to allow all exporters and importers to settle their cross-border trades in the yuan this year. The People’s Bank of China said that it was “part of plans to grow the currency's international role” and “would respond to overseas demand for the yuan to be used as a reserve currency.”
American Numismatic Association Governor 2023 to 2025 - My posts reflect my own thoughts and are not those of the ANA.My Numismatics with Kenny Twitter Page
Instagram - numismatistkenny
My Numismatics with Kenny Blog Page Best viewed on a laptop or monitor.
ANA Life Member & Volunteer District Representative
2019 ANA Young Numismatist of the Year
Doing my best to introduce Young Numismatists and Young Adults into the hobby.
0
Comments
was mostly about currency and trade in USD acroos the world and how in the next ten years we could very well see a shift to the Yuan and/or Euro. also an article to counter the main one which is what i like about WSJ.
folks think the Euro is toast, but they are doing NOW what we only debate (and hide from here). the Euro will recover faster and stronger.
i don't know about a gold standard for any currency....yet. good article...thanks