The Hoarding Continues: China Has Imported More Gold In Six Months Than Portugal's Entire Gold Reserve

Tyler Durden's picture

While the highly "sophisticated" traders that make up the gold market continue to buy or sell the precious metal based on whether the Fed will or will not do the NEW QE tomorrow (or just because, like Bruno Iskil, they have a massive balance sheet, and can create margin position out of thin air with impunity), China continues to do one thing. Buy. Because while earlier today we were wondering (rhetorically, of course) what China is doing with all that excess trade surplus if it is not recycling it back into Treasurys, now we once again find out that instead of purchasing US paper, Beijing continues to buy non-US gold, in the form of 68 tons in imports from Hong Kong in the month of June. The year to date total (6 months)? 383 tons. In other words, in half a year China, whose official total tally is still a massively underrepresented 1054 tons, has imported more gold than the official gold reserves of Portugal, Venezuela, Saudi Arabia, the UK, and so on, and whose YTD imports alone make it the 14th largest holder of gold in the world. Realistically, by now China, which hasn't provided an honest gold reserve holdings update to the IMF in years, most certainly has more gold than the IMF, and its 2814 tons, itself. Of course, the moment the PBOC does announce its official updated gold stash, a gold price in the mid-$1000 range will be a long gone memory.

Here is the latest breakdown of gold reserves by Top 20 countries via the WGC:

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Tsunami Wave's picture

Gold, Bitchez!! Have a nice day.

vast-dom's picture

and gold still under $2k/oz? manipulation of PMs.

AldousHuxley's picture

this is like comparing an apple and an apple car.


portugal population 10M

China population 1,344M


China should be compare to entire EU. Just Beijing alone has twice more people than entire country of portugal.





gmrpeabody's picture

Does this mean ..., I'm not stupid for holding PMs...? No, wait... don't answer that.

Jay Gould Esq.'s picture

The United States: "Officially" 8,133 tonnes...

When was the last time these "official" bullion holdings were audited, and the findings of said audit made a matter of public record ?

smlbizman's picture

i would question the u.s. and all others that the fed is holding for probably the top 5 just have a reciept...and the fed is probably using the ...dont ask dont tell policy, when countries inquire about their gold..

fourchan's picture



all those we buy gold places are holes in america gold runs out to the rest of the world through.

ammo42's picture

The United States: "Officially" 8,133 tonnes...

It's not difficult to declare such large reserves if you count tungsten.

nmewn's picture

What does population have to do with China printing and exchanging that for gold?

dexter bland's picture

"However, our information collection from various trade sources indicated that these Hong Kong export numbers have been highly inflated by growing round tripping between mainland China and Hong Kong whereby local companies used gold to engage in currency and interest rate arbitrage transactions."


boogerbently's picture

What is the (percieved) advantage of govt's manipulating gold down, OTHER than the obvious, they can buy more?

There must be some technical, currency, inflationary reason.

Dr Benway's picture

The gold price exposes the money printing and gold presents an investment alternative to ponzi assets, so they want to prevent gold rising. On a grander level gold represents a threat to the very core of a financial system built on air.

This is the theory in any case, YMMV.

Manthong's picture

Gold is one of the determinants for interest rates.. an escalating price of gold puts pressure on interest instruments to pay more to compete. Central banks have to and will continue to force the price of gold low in order to keep interest rates low and government debt manageable..

until something beyond their control perturbs the equilibrium and everything changes.

fourchan's picture

gold, enemy of the out of control state.

GAAP is crap's picture

I believe the oligarchs ruled well with a gold standard also.  I think causing the great depression 1 and bringing 'states' into 2 'world' wars qualifies as out of control.  Fiat does put a new spin on it.  The key word is control.  Gold can suck if they manage to control it...which they seem to do a good job of

When it serves their purposes, they'll monetize gold, confiscate it from citizens, and throw it in the 'basket' they keep mentioning...for the good of us all, of course. 


beware the monetization of gold trap.  let them keep the fiat while we transact with real assets they won't admit is money...


economics9698's picture

I always thought it insanely stupid to be a mercantilist in the days of the fiat currencies.  I guess someone gave China the memo.

Michael's picture

This is bullish for lead;

Social Security Administration To Purchase 174 Thousand Rounds Of Hollow Point Bullets

First it was the Department of Homeland Security, then it was the National Oceanic and Atmospheric Administration, and now the Social Security Administration is set to purchase 174,000 rounds of hollow point bullets that will be delivered to 41 locations across the country.

A solicitation posted by the SSA on the FedBizOpps website asks for contractors to supply 174,000 rounds of “.357 Sig 125 grain bonded jacketed hollow point pistol ammunition.”

lemonobrien's picture

well, when peoples don't get their social security checks, theys bounds to go to washington; find the social security offices, and pay them a visit. personally; and if they can't give the peoples their money, they mights have to give them some ammo instead.

Divine Wind's picture




Now dat wuz well said. You talks good.

Might you be interested in the job of President?

Michael's picture

DHS Classifies New Ammo Purchases Following Controversy

The Department of Homeland Security has redacted information relating to the quantity of bullets it is buying following a controversy concerning the agency’s purchase of over a billion rounds of ammo, which many fear is a sign the federal government is preparing for civil unrest in the United States.

Despite the fact that documents are only supposed to be redacted if authorized by Congress or for national security reasons, a solicitation posted on the FedBizOpps website yesterday concerning ammunition purchases made by the DHS on behalf of Immigration & Customs Enforcement (ICE) contains numerous blacked out sections.

The classified portions of the document include references to the amount of 223 62 and 223 64 grain ammunition being purchased.

The solicitation explains how the contract put out by the DHS to purchase the ammunition was not subject to “full and open competition,” a process justified by what the DHS claims was an “unusual and compelling urgency” to acquire the bullets, noting that there is a shortage of bullets which is threatening a situation which could cause “substantial safety issues for the government” should law enforcement officials not be adequately armed.

The Department of Homeland Security’s decision to black out sections of the document, including the number of bullets being purchased, is likely to be related to a massive controversy which has snowballed over the last few weeks pertaining to concerns as to why the federal agency has purchased well over a billion rounds of bullets over the last 6 months alone.

The DHS’ decision back in March to purchase of 450 million rounds of .40-caliber hollow point bullets that are designed to expand upon entry and cause maximum organ damage prompted questions as to why the federal agency required such powerful bullets and in such large quantities merely for training purposes.

This was followed up by a more recent order for a further 750 million rounds of assorted ammunition, including bullets that can penetrate walls.

Michael's picture

It'll be more likely those hollow point bullets will be used more on black people statistically speaking just as in New Orleans.

Having a black president next year will make it easier to use those bullets on blacks since no one will question Obama's use of those caps and their purchase by his administration.

I'm voting for Obama.

Paul Atreides's picture

Voting only gives the current system of electoral fraud and bankster puppet politicians your approval.

DON'T VOTE 2012!

boogerbently's picture

Write in Ron Paul, for prez (NOT because you love him, because you HATE the current 2 party scam).

Vote for the "party of your choice" non-incumbent.

CH1's picture

VOTING???  As in, for a politician?

How barbaric... how obsolete.... and what a massive waste of time.

Jack Napier's picture

Ron Paul's entire family is in the masonic order even though he claims he himself is not, but the apple doesn't fall far from the tree. There are onliy 2 votes that matter, your wallet and your feet, but if you vote with your feet that's basically giving up. The only way to make a difference is to stack physical metal and to convince others to do the same.

Michael's picture

I voted yesterday in the Florida primary and helped defeat Paul Ryan's endorsement of Porter Goss by putting in Trey Radel instead.

divide_by_zero's picture

With all these amo purchase thru the executive branch I don't think your impeachment fallback plan will work with Obama. It's clear now he doesn't intend to leave office.

PiratePawpaw's picture

Michael while this is indeed interesting, it is not suprising. This is why for over ten years my PM portfolio has included: Gold, Silver, Copper, Brass, and Lead. We need to be prepared for the same thing they are preparing for. Change. People resist it, and it will be unpleasant; but we will emerge from it much better off if we are prepared. Just holding the above-mentioned metals is not enough, we need to know how to and be prepared to use/exchange them all.

I dont depend on the govt for anything now. As the situation deteriorates, we can depend on them less. Be prepared to take care of yourself, for everything. If you cant personally provide it, learn to live without it.

This just in's picture

Seriously.  We all sit around giggling, but why the hell ARE they buying all the ammo?  And HOLLOW POINT ROUNDS? 

DanDaley's picture

Because they want you DED...D-E-D, DED!

eaglefalcon's picture

Yup, that's what the executive branch of the government does the best: they execute

DoChenRollingBearing's picture

@ vast-dom

Yep.  Everyone should do what China is doing re gold.  BUY.

Article on the "rest of the metals" (iron, copper, titanium, aluminum, etc.) by Mickey Fulp, "The Mercenary Geologist":

SeverinSlade's picture

Let's see.  Equities have rallied a ton since the June lows and gold and silver have done...what?  Trade sideways?  The euro continues to implode, war is imminent with Iran/Syria, food inflation is rampant...and still, gold and silver do NOTHING?

Manipulation for 500 Bob!

Cognitive Dissonance's picture

And the answer is.........Keep buying the freaking dip.

El Oregonian's picture

Hey! I'm not done stacking!!! It is way better for us in the long haul.

Keep your chin up Soldier!

NooooB's picture

Are they buying it or digging it up in Africa? That would be an important distinction with relation to the effect on gold prices.

@ 15:40 it gets interesting...

Solon the Destroyer's picture

China is the largest gold miner nation in the world at about 30% more than the second place nation, South Africa.

The amount of their purchase so far this year equates to a little more than their entire annual production for the last year that I have accurate figures (2006).

Now they could certainly have ramped production in the intervening 6 years, but it is doubtful their production would have doubled.  So some of this gold had to have come from the "market".  That market could be direct-from-a-miner, yet it should still have rocked supply of physical to the general market, on the margin.  Have there been episodes of temporary backwardation this year?  I don't recall any.

Is it possible this delivery is the resolution of old mining book hedges in the futures market and that the buying came over a long period of time in the past?

NooooB's picture

Are they buying it or digging it up in Africa? That would be an important distinction with relation to the effect on gold prices.

@ 15:40 it gets interesting...

donsluck's picture

Actually, this news may be gold bearish, since if China slows their purchases, demand will drop.

long-shorty's picture

if China is buying all that gold and Paulsen owns 5% of the GLD, and the price is just sitting here, what would happen were they to stop buying?

this makes me a bit nervous about the price of gold in the short run.

SheepleLOVEcheddarbaybiscuits's picture

sorry off topic Id thought I should throw this out there

"SS Admin getting quotes for large quantities of hollow-point rounds"

DoChenRollingBearing's picture

YES, WHY is the Social Security Administration buying so much ammo?

knukles's picture

The death panels that the administration said did not exist.

(no sarc intended)