Buried in this report from B'berg is the following paragraph:
"China should increase bullion reserves to 6,000 tons in the next three to five years, the China Youth Daily said on Nov. 30. The report cited Ji Xiaonan, chairman of the supervisory committee at the state-owned Assets Supervision and Administration Commission. China has lifted its stockpile to 1,054 tons since 2003."
bloomberg.com
But B'berg left the juicy stuff out of Xiaonan's remarks, which was picked up by Reuters:
Another paper, the China Youth Daily, quoted Ji as saying that a team of experts from Beijing and Shanghai had set up a task force last year to look at the issue of gold reserves.
"We suggested that China's gold reserves should reach 6,000 tons in the next 3-5 years and perhaps 10,000 tons in 8-10 years," the paper quoted him as saying."
reuters.com
According to this: seekingalpha.com China presently buys its reserve bullion from domestic sources only. If it plans to even get to one half of what Xiaonan claims it needs in the short term, i.e., 3,000 tons, it will be forced to buy in the international market.
The China Post on the issue:
chinapost.com.tw
Reach your own conclusions on what this will do to POG in the longish term. In fact, the amounts mentioned are so staggering that it is difficult to see how China's goals can be accomplished. |
