China buying gold

China Gold Reserves to Be Revealed After 6 Years of Secrecy

China gold reserves

China gold reserves have been secret for six years.

We know two things: China has been amassing the yellow metal, and that with enough of it, China could take down the U.S. dollar.

According to new Bloomberg Intelligence estimates, China may reveal its figures as soon as next month.

Here's the whole story behind China gold reserves and its hold over the U.S. dollar

China Gold Reserves Rise to Threatening Level

China gold

No one knows exactly how much gold China has. Last disclosed in April 2009, China gold reserves were at 1,054 tonnes. At least, that was the official number given.

You see, China only reports its gold reserves every few years.

While we don't know exactly how much gold China has, we do know one thing: it is accumulating more.

And we also know that with enough gold, China could collapse the U.S. dollar. Here's the story behind China gold reserves and its hold over the U.S. dollar...

Why China's Buying Gold

With gold prices on track to log a 12th consecutive annual gain, China is beginning to take a fresh shine to the yellow metal.

Now China's buying gold in an attempt to play catch up with the United States and other influential nations, the London Bullion Market Association reports.

At a recent conference in Hong Kong, Chairman David Gornall told the association's conference, "When comparing China to the U.S., it would seem that in China, gold asset allocation can only go in one direction. The country has only 2% of its reserves in the form of gold compared with the U.S. at 75%."

Other developed countries, including Germany, Italy and France, maintain a gold reserve in excess of 70%. Meanwhile, China's share lags, data from the World Gold Council reveals, trailing at a paltry 2%.

Since 2009, The People's Bank of China has not disclosed any changes to its gold holdings. At that time, the bank noted its stash had risen by 76% to some 1,054 tons. Its cache is set to swell again as the country, facing an economic slowdown from a plethora of lethargic international markets, gets defensive.

The spike in gold imports to China, via Hong Kong, reveals new significant accumulations of the commodity. Chinese imports of the precious metal totaled 69.7 metric tons in September, a striking 22% increase from a year ago.

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