China epic GOLD DISCLOSURE: THEY increased 57% their GOLD holdings in only 1 month ( +14 millions ounces troy)
Back in April we wrote that “The Mystery Of China’s Gold Holdings Is Coming To An End” as a result of China willingness to add the Yuan to the IMF’s SDR currency basket which would require the disclosure of China’s gold holding ahead of an IMF meeting on SDR composition which may be held in October.
By way of background, the reason why everyone has been so focused on Chinese official gold holdings is that there has been no official update to the gold inventory of the world’s biggest nation, which have been fixed at 33.89 million oz since April 2009, a little over 1000 tons. In other words, the PBOC’s gold inventory has been “unchanged” for over 6 years which is in stark contrast to the ravenous buying of physical gold China has been engaging in for the past 5 years.
As we further noted in April, “with China disclosing so little about its hoard, finding out how much the central bank has in its vaults is of increasing interest to traders. Confirmation of bigger holdings would signal the importance of the metal as a reserve asset and boost market sentiment, TD Securities’ Melek said. At a time when prices are languishing, the buying could give support, said Suki Cooper, director of commodities at Barclays Plc in New York.”
In a rare comment on gold, Yi Gang, the central bank’s deputy governor, said in March 2013 that the country could only invest as much as 2 percent of its foreign-exchange holdings in gold because the market was too small. The press office of the People’s Bank of China in Beijing didn’t respond to a fax seeking comment sent on April 14.
Well, the long awaited moment has finally arrived and this morning, after a 6 year delay when, China finally admitted that it had been misrepresenting its gold holdings for a very long time, when it announced that its gold holdings had increased from 38.89 million to 53.31 million troy ounces, a 57% increase “in one month.”
more:
http://www.zerohedge.com/news/2015-07-17/china-increases-gold-holdings-57-one-month-first-official-update-2009
China is already advertising their Renmimbi as a new gold-backed world currency on billboards. If it is added to the WB basket and is gold-backed, the USD will turn to sh*t pretty quickly. Sounds like they are hoarding enough gold for an immediate rush to convert to it out of the USD.
http://www.sovereignman.com/trends/the-chinese-have-put-out-billboard-ads-announcing-the-renminbi-as-the-new-world-currency-16318/
http://investmentwatchblog.com/china-epic-gold-disclosure-they-increased-57-their-gold-holdings-in-only-1-month-14-millions-ounces-troy/
