China & Gold Values
China is currently the second-largest holder of U.S. Treasuries behind Japan, creating a need for China to create a stronger hedge against a weakening dollar. This follows a previous statement by Teng Tai, China's chief securities dealer, when he advised the country to increase its current gold reserve of roughly 600 tons to 2,500 tons in the near term and maintain around 3,000 tons over the long term.
Gold speculators have anticipated such a move for some time, as China's current gold position is only 1.4% of its total foreign exchange reserve, according to figures from the International Monetary Fund. This percentage ranks it the lowest among the top 15 central banks with bullion reserves, according to a recent report from Credit Suisse First Boston. A move to 2,500 tons would make it the fifth-largest bullion holder, behind countries like the United States and Germany. Gold speculators are partying over the possibilities.[tags] gold, spot gold, china, gold price, gold miner, gold nuggets[/tags] gold nuggets
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The ending of any price suppression or cartel in a market is usually a bullish signal. What would the gold price be in a free market without the central banks swapping and loaning gold amongst themselves?
For the times we live in, gold is a MUST HAVE investment.