Why Are the Chinese Buying Record Quantities of Gold?

Why Are the Chinese Buying Record Quantities of Gold?

Gordon G. Chang


January 29, 2012

This month, the Hong Kong Census and Statistics Department reported that China imported 102,779 kilograms of gold from Hong Kong in November, an increase from October’s 86,299 kilograms. Beijing does not release gold trade figures, so for this and other reasons the Hong Kong numbers are considered the best indication of China’s gold imports.

Analysts believe China bought as much as 490 tons of gold in 2011, double the estimated 245 tons in 2010. “The thing that’s caught people’s minds is the massive increase in Chinese buying,” remarked Ross Norman of Sharps Pixley, a London gold brokerage, this month.

So who in China is buying all this gold?

The People’s Bank of China, the central bank, has been hinting that it is purchasing. “No asset is safe now,” said the PBOC’s Zhang Jianhua at the end of last month. “The only choice to hedge risks is to hold hard currency—gold.” He also said it was smart strategy to buy on market dips. Analysts naturally jumped on his comment as proof that China, the world’s fifth-largest holder of the metal, is in the market for more.

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3 Responses to Why Are the Chinese Buying Record Quantities of Gold?

  1. Jeff Boots says:

    Why dont the chinese have any gold records?

  2. cromwellshead says:

    To buy Iranian oil, and generally wipe the dollars a.se as a reserve. Maybe they realise that their “bitch bank” status is just that. You do not undermine a civilisation as old as theirs without payback.

  3. gideon says:

    What would you be buying if you had all those FRN’s. Hell they’ve been buying up all the commodities they can get their hands on for years. Dig this Venezuela just got a shipment of gold in. As the man said, “Gold is the currency of the Elites”. When they pull the plug what will really matter is if you have food, water and the means to defend you and yours.

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