dinsdag 21 april 2015

China Discloses Gold Reserves

After 6 years, China still hasn't disclosed its gold reserves. They just confirmed that today. This is a complete disappointment. On the chart below from Bullionstar.com you can see that China disclosed its gold reserves in 2003 and 2009, which is a time interval of 6 years. So I hoped that they would disclose it in April 2015, just before the IMF review of the SDR in May (which is done every 5 years). Gold (GLD) didn't react and here is why.

The consensus estimate reported by Bloomberg was 3510 tonnes of Chinese gold reserves, based on import data. If we do the math, this is about 409 tonnes a year or 8 tonnes a week, which is an acceptable estimate as global mine supply is about 50-60 tonnes a week.

However, China just disclosed it hasn't accumulated any gold at all. It now still possesses 1054 tonnes of gold reserves. That result can be found here on PBOC website under the statistics and analysis department page:

Under 2015 money and banking statistics:

China is standing at 7th place among top nations like the U.S., Germany, the IMF, Italy and France. See table below from April 2015.

I still believe China has accumulated gold to the amount of around 4000 tonnes and doesn't reveal its gold holdings so that they can accumulate gold at a cheap price.

Read the analysis here.

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