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China’s Total Gold Holdings Much Higher - Owns Gold In SAFE and CIC
China’s Total Gold Holdings Much Higher - Owns Gold In SAFE and CIC
- China revises up its stated gold reserves in bid for IMF membership and reserve currency status
- China announces a 604 tonne increase in gold reserves
- First public disclosure re reserves in since 2009
- China officially owns around 1,660 tonnes of gold reserves - true total figure is likely much larger
- Playing long game - protecting USD reserves and positioning RMB as global reserve currency
- China true gold holdings much higher as also owns gold in SAFE and CIC
China officially revised its gold reserves upward for the first time since 2009 on Friday. The People’s Bank of China (PBOC) stated on Friday that it had added 604 tonnes of gold to its official reserves last month.
Gold is no longer used to back paper and digital money of today, however it remains an important part of monetary reserves internationally. This can be seen in the People's Bank of China's (PBOC) announcement of an increase in their gold reserves.
China’s official reserves are now almost 1660 tonnes of gold. Analysts, including Bloomberg and ourselves, had been expecting a sharp jump to at least 2,000 tonnes and possibly as high as 3,000 or 4,000 tonnes.
It is clear by the secrecy surrounding China’s reserves that they view gold as a vital strategic asset. Chinese gold reserves increased by 57 percent and China’s holdings have now surpassed those of Russia to become the fifth-largest. The U.S. is believed to have the biggest reserves at 8,133.5 tons. The current official holdings rank them as the fifth largest holder of gold in the world (see chart).
Many analysts believe this figure to be an understatement given the enormous volumes of gold that have been passing through Hong Kong - and through Shanghai in more recent years - and the large amounts that have been produced and bought domestically.
It is important to remember that as we have long pointed out two other entities, besides the PBOC, have also been buying gold - the State Administration of Foreign Exchange (SAFE) and the China Investment Corporation (CIC).
Although if the combined holdings of the PBOC, SAFE and CIC were added together, China may well be the second largest holder of gold bullion - after the U.S. - assuming that U.S. gold reserve figures, which have not been publicly audited in over 60 years, are accurate.
It is likely, that in total and between the three China’s financial institutions, China may in fact be holding between 3,000 tonnes and 6,000 tonnes of gold.
China is playing the long game and they could be low balling their total gold holdings - official central bank reserves and non official holdings - in order to maintain confidence in their substantial US dollar holdings and to aid their bid to join the IMF.
China became the world’s second-largest economy in 2010 and has stepped up efforts to internationalize its currency - the yuan. The Chinese are pushing for full convertibility of the RMB and increasing their gold holdings will create confidence in the fledgling reserve currency and aid them in this regard.
China, regardless of its ambitions, is not currently in a position to challenge the the dollar’s reserve currency supremacy. The absence of a deep and liquid bond market is one impediment that they need to overcome on this regard.
On the other hand, it certainly is strong enough to take its place at the IMF and have the yuan included in the currency basket that makes up Special Drawing Rights (SDRs).
Whoever has the gold makes the rules. While gold is denigrated at every opportunity by some commentators - frequently Keynesians anti gold ideologues - it is clear that the true power-brokers in the world - leading international banks and central banks - still adhere to that adage.
To demonstrate its fitness to join the IMF, China must demonstrate its financial and monetary strength by declaring sufficient gold reserves which it has now done.
The bloated, debt-based international monetary system faces huge challenges and the scale of debts globally could indeed lead to collapse. In time China may disclose its true gold holdings and partially back its currency with gold to discourage capital flight.
Gold is no longer used to back the trillions and trillions of paper and digital money of today, however it clearly remains money contrary to assertions to the contrary. Gold bullion remains a substantial part of central bank reserves in the U.S. and Europe.
The PBOC gold announcement is the continuation of the trend of China positioning the yuan as global reserve currency. China’s gold reserves remain miniscule as a percent of their massive $3.7 trillion foreign exchange reserves – less than 2%. In marked contrast to the U.S., Germany and even France and Italy when gold’s share of national forex reserves is over 70%.
We would not be surprised if the PBOC begins to accumulate a minimum of 100 metric tonnes in gold reserves a month going forward as the Russians have done in recent years. Alternatively, they may elect to continue accumulating gold bullion quietly through SAFE and the CIC - indeed they have been buying hundreds of gold mines in South America, Africa and internationally in recent years - likely securing another important source of supply.
Central banks internationally still hold physical gold as financial insurance. Investors and savers should do the same and have an allocation to gold bullion outside of the banking system, in the safest vaults in the world.
Must-read guides to international bullion storage:
Essential Guide to Gold Storage in Switzerland
Essential Guide to Gold Storage in Singapore
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Germany has 3,3 kt gold on the paper. 2/3 are in NY and London. Germany will never see it again. hence they should rank No 5 after Russia. Russia is ready to show their holdings anytime.......
http://www.janes.com/article/50936/usn-confirms-2016-as-starting-point-f...
I don't believe the US has that much gold. Let's audit!
Hey Goldcore, wasn't it you that said gold was getting ready to go parabolic?
The bottom line is that China has high hopes of undermining the US $ as the world reserve currency. The IMF and the US have long known that the ChiComs wish to introduce a gold backed security which should send the $ plumetting
But the joke is on them because the IMF and the US have the ability to destroy the value of gold while not even manipulating one physical ounce. It's all done on paper. This is something the ChiComs dont understand and never counted on in their plans. And they never learned from Russia's mistake of allowing its own currency be linked to a commodity - OIL. See how well that worked out for the Russians. Linking your currency to a commodity is economic suicide.........
Clearly we are at war -
An ideological war
Currency wars
Trade wars
Commodity wars
And a war where Chna steals the natural resources of its neighbors and builds illegal islands to project power allowing them to intimidate their neighbors. This also drives the US carrier task forces right out of the South China Sea.
The halting of the NYSE a few weeks ago was intentional. It was no 'computer glitch'. This is going to get interesting as it all intensifies.
US miners can no longer make a profit when gold dros below $1145 an ounce. The ChiComs use their own army to mine gold for next to nothing.
The US and the Central banks will never allow the ChiComs to overtake the US $ as the world's reserve currency. It would destroy what is left of the US
Like I stated above - this is going to get interesting..............
Now I can buy a bunch of silver and dissolve it into some acid and shock it onto some shit and sell that shit for more with my cheaper silver... brilliant!
"The absence of a deep and liquid bond market is one impediment that they need to overcome on this regard."
Not so important anymore apparently!
One important point.
-----
The USSA has pressured Switzerland into doing whatever the USSA demands. Thus Switzerland is now a bad place to store gold.
While Singapore has [apparently] not yet, I read recently in ZH that Singapore has agreed to allow the USSA military to establish a military base in Singapore in 2018.
If this is so, the old addage "if you don't have it in your own possession, you don't have it" rings increasingly true.
Why Singapore would be THIS stupid is beyond me.
Anyone know why? I'd love to hear opinions.
I'll give it a go. Its British colonial past would most likely have something to do with it. Singapore is situated on the Southern tip of Malaysia, smack bang in the middle of Indonesia, Malaysia and various sultanates with unresolved border issues. I was looking up the origins of languages in the region to search for the reason why the people in the area use latin script instead of their own writing system. It was fascinating to learn that the Malaysian and Indonesian languages are 95% cognate, composed of Arabic, Tamil, Hindi, Sanskrit, Dutch and Chinese. Just like the composition of their language, these people are not homogeneous and were fiercely loyal to their regional sultans before they were united into nations. Latin script had to be used to tie all these disparate parties to a single official language.
The last "war" Malaysia fought was just a couple of years ago, 2013, during the Lahad Datu Standoff when an obscure territory known as the Sultanate of Sulu (Apparently claimed by Indonesia, Malaysia and the Philipines) sent an armed force to claim an obscure village. The whole area is full of such old claims and rivalries. The cities and economies may be modern, but their hearts belong in the middle ages.
Although Singapore has enjoyed relative peace and stability since its expulsion from Malaysia in 1965 (That's right, Malaysia expelled its own territory!), it has a British colonial past, it is only a city state and finds itself surrounded by countries whose inhabitants display not a bit of the modern stability Singapore enjoys. They need the umbrella protection of a super power. I guess that they could not have asked the Chinese because it would have exacerbated regional conflicts. So, they opted for the USA instead.
I think you are right about this being an incredibly stupid choice.
I guess we never know what kind of wacky trains of thought "leaders" go through. But letting in the USSA seems like inviting in a pack of Velociraptors to protect against rats. Thanks for thinking it through though, and who knows, maybe you're right.
Umbrella protection?
A city that allows a US naval base to be built there makes it a target for Chinese nuclear missiles in the event of a Sino-US war. The entire country will disappear in a bright flash of light. Some umbrella.
http://www.bloomberg.com/news/videos/2015-07-20/is-the-u-s-dollar-moving...
china 20000+ tons
The US holds 8000 tons of bullshit, gold was sold a long time ago.
Somebody continues to supply gold for delivery.
I'm yet to see factual proof of much delivery at all... not saying it aint real, just aint seeing the proof.... EVERYTHING is tarred with the bullsh*t that IS the worlds "markets" (gaging as I say that word)
The Secret Covenant –Lucifarian Illuminati Oath
An illusion it will be, so large, so vast that it will escape their perception. Those who see it will be thought of as insane. We will create separate fronts to prevent them from seeing the connection between us. We will behave as if we are not connected to keep the illusion alive. Our goal will be accomplished one drop at a time so as to never bring suspicion upon our selves. This will also prevent them from seeing the changes as they occur. We will stand above the relative field of their expertise for we know the secrets of the absolute. We will work together always and will remain bound by blood and secrecy. Death will come to he who speaks, we will keep their life span short and their minds weak while pretending the opposite. We will use our knowledge of science and technology in subtle ways so they never see what is happening.
We will use soft metals, aging accelerators and sedatives in food & water, also in the air. They will be blanketed, by poisons everywhere they turn. The soft metals will cause them to lose their minds. We will promise to find a cure from our many fronts, yet we will feed them more poison. The poisons will be absorbed through their skin and mouths, they will destroy their minds and reproductive systems. From all this their children will be born dead and we will conceal this information. The poisons will be hidden in everything that surrounds them, in what they breath, eat, drink & wear. We must be ingenious in dispersing the poisons for they can see far. We will teach them that the poisons are good, with fun images & musical tones. Those they look up to will help. We will enlist them to push our poisons.
They will see our products being used in films and will grow accustomed to them and will never know their true effect. When they give birth we will inject poisons into the blood of their children and convince them it is for their help. We will start early on, when their minds are young, we will target their children with what children love most, sweet things. When their teeth decay we will fill them with metals that will kill their minds and steal their futures. When their ability to learn has become affected, we will create medicine that will make them sicker and cause other diseases for which we will create yet more medicine. We will render them docile and weak before us, by our power. They will grow depressed, slow and obese, and when they come to us for help, we will give them more poisons. (Yellen comes to mind lol)
We will focus their attention toward money and material goods, so they never connect with their inner self. We will distract them with fornication, external pleasures and games so they may never be one with the oneness of it all. Their minds will belong to us and they will do as we say. If they refuse we shall find ways to implement mind altering technology into their lives. We will use fear as our weapon. We will establish their governments and establish opposites within. We will own both sides. We will always hide our objective but carry out our plan. They will perform the labour for us and we shall prosper from their toil. Our families will never mix with theirs. Our blood must be pure always, for it is the way. We will make them kill each other when it suits us. And we will keep them separated from the oneness by dogma and religion. If people knew what we are doing they will know they are anything but free.
We will control all aspects of their lives and tell them what to think and how. We will guide them kindly and gently letting them think they are guiding themselves. We will foment animosity between them through our factions. When a light shall shine among them, we shall extinguish it by ridicule, or by death, which ever suits us best. We will make them rip each others hearts apart and kill their own children. We will accomplish this by using hate as our ally, anger as our friend. The hate will blind them totally and, never shall they see that from their conflicts we emerge as their rulers. They will be busy killing each other. They will bathe in their own blood and kill their neighbours for as long as we see fit. We will benefit greatly from this, for they will not see us, for they cannot see us. We will continue to prosper from their wars and their deaths. (They forgot about most of the ZH's)
We shall repeat this over and over until our ultimate goal is accomplished. We will continue to make them live in fear and anger through images and sounds. We will use all the tools we have to accomplish this. The tools will be provided by their labour. We will make them hate themselves and their neighbours. We will always hide in the divine truth from them, that we are all one and that there is One Supreme Father and Creator of all. This they must never know! They must never know that colour is an illusion; they must always think they are not equal. Drop by drop, drop by drop, we will advance our goal. We will take over their land, resources and wealth to exercise total control over them. We will deceive them into accepting laws that steal the little freedoms they will have. We will establish a money system that will imprison them forever, keeping them and their children in debt.
When they shall band together we shall accuse them of crimes and present a difference story to the world for we shall own all the media. We will use our media to control the flow of information and their sentiment in our favour. When they shall rise up against us we will crush them like insects, for they are less than that. They will be helpless to do anything for they will have no weapons. We will recruit some of their own to carry out our plans. We will promise them eternal life, but eternal life they will never have for they are not of us. The recruits will be called “initiates” and will be indoctrinated to believe false rights of passage to higher realms. Members of these groups will think they are one with us, never knowing the truth. They must never learn this truth for they will turn against us.
(Lost the will to highlight anymore ;-)
For their work they will be rewarded with earthly things and great titles, but never will they become immortal and join us, never will they receive the light and travel the stars. They will never reach the higher realms, for the killing of their own kind will prevent passage to the realms of enlightenment. This they will never know. The truth will be hidden in their faces, so close they will not be able to focus on it until it’s to late. Oh yes, so grand the illusion of freedom will be, that they will never know they are our slaves. When all is in place, the reality we will have created for them will own them. This reality will be their prison. They will live in self-delusion. When our goal is accomplished a new era of domination will begin. Their minds will be bound by their beliefs, the beliefs we have established from time immemorial. But if they ever find out they are our equal, we shall perish then THIS THEY MUST NEVER KNOW.
If they ever find out that they can vanquish us, they will take action. They must never know, ever find out what we have done, for if they do, we shall have no place to run, for it will be easy to see who we are once the veil has fallen. Our actions will have revealed who we are and they will hunt us down and no person shall give us shelter. This is the secret covenant by which we shall live the rest of our present and future lives, for this reality will transcend many generations and life spans. This covenant is sealed by blood, our blood. We THE ONES WHO FROM HEAVEN to EARTH CAME. This covenant must NEVER, EVER, be known to exist. It must NEVER, EVER, be written or spoken of for if it is, the consciousness it will spawn will release the fury of the PRIME CREATOR upon us and we shall be cast to the depths from whence we came and remain there until the end of time of infinity itself.