Just how much does China have?

Posted | 23/01/2014 / Views | 1920
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After a recent article in the Shanghai Daily there is growing speculation and anticipation around exactly how much gold does the People’s Bank of China have and when will they tell the world.  The last official number was only 1054t back in 2009, and not a whisper since.  Last year alone China (officially) imported over 1100t and produced (and kept) 430t, not telling us how much was personal and how much for PBOC reserves.  The state controlled Shanghai Daily’s article suggested they will reveal 2,710t now sits in their central bank.  They have very cleverly kept this under wraps while buying up at low prices.  As Albert Cheng, MD of World Gold Council (Far East) told the Shanghai Daily “If China announces an increase in gold reserves, there would be an immediate drag-up force in the gold market”.

As opposed to the bullion banks who still have short positions to get out of, if you were as 'long' as China and are buying as much as they are, why would you let the cat out of the bag and risk paying a whole lot more?  It will be interesting to see if they really do make any real announcements any time soon or just keep enjoying these nice low gold prices...