Views: 7016|Replies: 15

China wary of gold 'bubble’ danger after quietly doubling its reserves [Copy link] 中文

Rank: 8Rank: 8

Post time 2009-12-4 11:21:45 |Display all floors
The Chinese authorities have given the clearest indication to date that they view the surge in gold to an all-time high of $1,217 (£730) an ounce as a speculative frenzy.
By Ambrose Evans-Pritchard
Published: 8:22PM GMT 02 Dec 2009

Hu Xiaolian, the vice-governor of the central bank, said Beijing would not buy gold indiscriminately.

“We must keep in mind the long-term effects when considering what to use as our reserves,” she said. “We must watch out for bubbles forming on certain assets and be careful in those areas.”

China announced this year that it had quietly doubled its gold reserves to 1,054 tonnes, the world’s fifth largest holding. India has also joined the rush, gobbling up half the IMF’s gold sale.

News that the rising powers of Asia are shifting a chunk of their fast-growing reserves into gold in a flight from Western paper currencies has emboldened investors to take out large gold bets on the futures markets or through exchange traded funds (EFT), leading to the parabolic rise in price over recent weeks.

However, officials in Beijing are aware that China’s $2.3 trillion reserves are now so enormous that the central bank cannot buy much gold without distorting the price, so they have adopted a de facto policy of buying in a calibrated fashion each time prices fall back to their rising trend line – “buying the dips” in trading parlance. Experts say that China is putting a floor under the gold price but does not chase rallies once they are under way.

http://www.telegraph.co.uk/finan ... g-its-reserves.html
上传图片.jpg
[url=http://www.chinahdtv.org/promotionlink.php?key=24856e9c0fb449bb9366b526cbeb40dc][img]http://www.chinahdtv.org/pic/prolink.png[/img][/url]

Use magic tools Report

Rank: 8Rank: 8

Post time 2009-12-4 15:21:24 |Display all floors

To combat the American Many Way kongfu!

China needs to look back to it's own roots, the ying yang kongfu!

so that we can continue to grow no matter what the American Regime does,
and not to get trapped by American Regime strategies!

it's the only way to go for a GREAT POWER such as CHINA, now the world's no.2 greatest power!


cheeerios!


Green DRagon
Game Master

note: Don't forget, now China also has a STRATEGIC COMMODITY STOCKPILE too!

Use magic tools Report

Rank: 6Rank: 6

Post time 2009-12-4 15:46:47 |Display all floors
I thought that China was only gold it produced itself

Use magic tools Report

Rank: 8Rank: 8

Post time 2009-12-4 15:49:53 |Display all floors

China keeps its gold

a bubble would complicate things

Use magic tools Report

Rank: 4

Post time 2009-12-4 15:52:53 |Display all floors

Use magic tools Report

Rank: 8Rank: 8

Post time 2009-12-4 15:56:22 |Display all floors

Reply #4 lebeast's post

it's double talk jargon lar!

totally agree!

ha ha ha


cheerios!


Green DRagon
Game Master

Use magic tools Report

Rank: 8Rank: 8

Post time 2009-12-4 15:56:23 |Display all floors

I understand you can now buy gold from the counter in some banks in China

Parabolic buying by the populace might lead to interesting times

Use magic tools Report

You can't reply post until you log in Log in | register

BACK TO THE TOP
Contact us:Tel: (86)010-84883548, Email: blog@chinadaily.com.cn
Blog announcement:| We reserve the right, and you authorize us, to use content, including words, photos and videos, which you provide to our blog
platform, for non-profit purposes on China Daily media, comprising newspaper, website, iPad and other social media accounts.