A commentary on Chinese gold holdings

CaptHenway

FWIW

linky

cohodk

A rational and logical article.

guitarwes

So we need to start buying more gold and yuans in an anticipation for a rise in both?

ricko

Interesting... says a lot, but concludes nothing... just more data points. Cheers, RickO

roadrunner

There's no doubt the Chinese govt and the Chinese people have been adding to their gold holdings that past 6 years. The only question is how much the central bank has accumulated since 2009.

I would expect their holdings to have increased from 1054 tonnes to something in the range of 2,500-3,500 tonnes. It really makes no sense for them to divulge that number until they have the necessary amount to get a
proper seat at the IMF "currency table." When they blurted out in 2009 that they had added over 500 tonnes since the previous report, it only helped to rally the gold price a lot higher from 2009-2012.

jmski52

Governments have always had this weird thing going on with gold. First, it's money then it's not. So then it's a commodity, then it's not - and it becomes a Tier I Asset (for further note issuance?)

And, then we have a bunch of it in storage - but not because we're going to use it in trade, just for "backing", but you can't just come & cash in your notes for it (because then we'd have to stick to some kind of budget.)

Weird stuff, really. Isn't it kinda like what they call a "shell game"?

Justacommeman

I'm in China now. The bigger story is how China is holding the yuan back. I think 2015 & 2016 currency wars will dot the headlines

Mark

ricko

<< <i>I think 2015 & 2016 currency wars will dot the headlines >>



I believe this is coming.... however, would put it out a year or two.... I think finances will continue the current state for two to three years and then a major event will be the tipping point. It likely will revolve around the Middle East .... Cheers, RickO

cohodk

<< <i>I'm in China now. The bigger story is how China is holding the yuan back. I think 2015 & 2016 currency wars will dot the headlines

Mark >>



Which currencies do you think will be at war and which will win? Which secondary players will suffer the greatest collateral damage?

Justacommeman

<< <i>

<< <i>I'm in China now. The bigger story is how China is holding the yuan back. I think 2015 & 2016 currency wars will dot the headlines

Mark >>



Which currencies do you think will be at war and which will win? Which secondary players will suffer the greatest collateral damage? >>



The Yuan and the dollar. The American consumer could be the short term winner. Japan could be an import winner and an exporting loser. Europe could benefit. China needs to manufacture growth at all costs.

Mark