19 September 2012

China has 6,355 tonnes of gold

Further to my article on Chinese gold imports, I have a follow up analysis of China's gold stock at the corporate blog.

OK, 6355 tonnes is a little too precise given the opaque nature of the gold market, but the point is that a reasoned approach means that China holds circa this number. I also estimate that of that number, official gold reserves are likely to be 1560 tonnes (not 6000 tonnes like this silly Zero Hedge post, which overstated China's gold import figures as well).

3 comments:

Golden vacation said...

Great analysis , Bron.

Have you read the following article in
Qiu Shi, "a magazine by the CCP Central Committee", published 1st of August?

Some of the highlights (translated poorly)

"China has more than 6000 tons of gold reserves should. Citizen's reserves are an important part of the national gold reserves, more than 6000 tons of the gold reserves are held by Chinese citizens but in contrast, India's private gold reserves has reached 12,000 tons."

Seems to fit well with your analysis.

That article was written by the China National Gold Group Corporation. On their website they talk about the role of gold as an "anchor stone", like the keel of a boat, which holds a currency steady. Elsewhere, they describe where China's gold went missing - for instance private gold evaporated with the cultural revolutions.

That, together with the notion of citizens gold reminded somewhat of Freegold.

Another question: Russia stunned the world with their revelation of in ground diamonds this week. Could Russia or China do the same thing with gold? It Sure would be sneaky to sit on a huge gold reserve this whole time when gold is undervalued.

Bron Suchecki said...

Thanks for that link. My quotes from China’s Gold: The Eternal Treasure by Sang Shang came from the same site. I tried to search for more stuff on gold but their search on the English site doesn't work well.

It is possible more reserves could be found in China, but it seems gold in the ground reserves never decline -
http://www.perthmintbullion.com/blog/blog/12-09-11/Will_We_Run_Out_Of_Gold_And_Silver.aspx

Anonymous said...

This isn't related to your article but gosh you look very similar to Matthew Modine from Full Metal Jacket.

Big fan of your blog!