China GROSSLY Understates Its Gold Reserves! Here’s Why & What They REALLY Are (+3K Views)

Today China came out with their Central Bank Gold Holdings reporting 1054 tonnes of gold reserves but this is impossible. Here is why.

So says Katchum (katchum.blogspot.ca) in edited excerpts from his original article* entitled China Central Bank Gold Holdings Don’t Match.

[The following is presented by Lorimer Wilson, editor of www.munKNEE.com and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.]

Katchum goes on to say in further edited excerpts:

China imports gold and also produces gold. This total addition in gold has surged since 2008 (white bars), due to the imports through Hong Kong. China consumes 60% of its gold in jewelry, the other 40% is added to the central bank gold reserves. This implies that we have 2710 tonnes instead of 1054 tonnes. That’s almost 3 times the reported number from the Chinese government.

China Gold Reserves

Additionally, the total assets of the Chinese central bank has gone up from 3 trillion to 6 trillion from 2008 till now, which is a doubling of the balance sheet.

Don’t tell me China didn’t buy any gold since 2008! I believe they just want to quietly buy more gold.

[Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.]

*http://katchum.blogspot.ca/2014/01/china-central-bank-gold-holdings-dont.html

Related Articles:

1. China & the West View Gold Very Differently – Here’s Why

1 Comment

[It has been] suggested recently that there must be collusion between America and China over the transfer of gold from Western capital markets. They assume that governments know what they are doing, so there is a bigger game afoot of which we are unaware. The truth of the matter, though, is simply that China and Western capital markets view gold very differently. Let me explain. Read More »

2. China Converting U.S. Dollar Debt Holdings Into Gold At Accelerating Rate

1 Comment

China, Russia and other nations are exiting their dollar-denominated holdings in favor of gold. This action should put pressure on the dollar and U.S. treasuries, pushing not only central banks, but mainstream investors towards the safety of precious metals and other tangible assets that cannot be defaulted on. There will be a rush out of dollars and into assets with no counter-party risk, it is just a matter of how soon it happens. Read More »

3. China Continues Buying Gold Like There Was No Tomorrow! Here Are the Impressive Numbers

China continues to buy gold with both hands, keeping up all the gold they produce and importing even more! Imports were up 50% in October vs. the previous month; up 68% in November and up 74% in December. What will January bring given the continued weakness in the price of gold? Probably even more buying! Read More »

4. China’s Role in the Future of Gold

In this infographic we look at how gold growth in China will impact the future of the precious metal. In Q4 of 2011 and continuing into 2012, China has bought more gold overall than even India and will continue to play an important role in consumption. Read More »

5. Gold Reserves: Who Are the 10 Biggest Owners – and How Soon Might China Become #1?

China currently is a distant 5th behind the U.S. in the extent of gold reserves it currently owns but gives every indication that it is intent on adding more. How long might it take for China to be number one in gold reserves? Read More »