Chart Of The Day: China’s $3.3 Trillion FX Reserves Could Buy All World’s Gold Twice

ksammut

Chart Of The Day: China’s $3.3 Trillion FX Reserves Could Buy All World’s Gold Twice

ricko

Amazing....one can only wonder how it will all shake out, and continue stacking, since that 'seems' to be the only solid plan for the future. Cheers, RickO

Timbuk3

Heard about it !!!

roadrunner

The article says something different:

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.

World's gold supply is in the 155,000-165,000 tonne range depending on who you believe. Central Banks "claim" to have around 31-32,000 tonnes. My gut says they don't
and China could probably buy what they really have 3X or 4X over. World's total gold value has been in the $8-11 TRILL range the past few years. Around $8.5 TRILL today.
Before China got to 10,000 tonnes the price would be well above $2,000/oz.

derryb

All I can say is they better spend it fast, while it's still worth something.

LochNESS

derryb,
Continuing diversification into gold from the huge foreign exchange reserves by the People’s Bank of China and other central banks is a primary pillar which will support gold and should contribute to higher prices in the coming years.

Author seems to think gold will surge upwards as a result of the imbalance between China's reserves (~700% increase) and spot growth (~400% increase [I think that's what it said...])

Author also says platinum spot is fairly close to gold spot. I thought platinum tended to be higher? I seem to recall paying more for my US Mint platinum sets than the gold sets. Is this unusual or typical?