Why China Needs to Buy More Gold
This list shows how countries stack up in terms of gold reserves.
As you can see, only 1.6% of China's foreign reserve holdings are in gold. They still hold over a trillion is in US debt. But they're actively working on diversifying that "overweight" asset allocation, as over any extended period its value has dropped.
Back in April, I wrote about how some analysts say China may spend up to $1 trillion of their foreign reserves:
China has been moving away from the dollar, and into alternative stores of wealth for years now.
But $1 trillion into gold? If it happens, such a large move would further threaten the dollar's status as reserve currency. It would also provide further buying pressure in gold for years to come (as the dollar crumples into a pitiful heap on the floor).
More like this...China Buys 47% of the World's Gold
Analyst Greg McCoach discusses how rising Chinese gold demand will put significant strain on global supplies -- and may be the catalyst that will push gold prices over the $1,500 level.
Will Asian Buyers Take Silver Over $100?
Asian investors and central banks are accumulating precious metals as an alternative to the dollar, and hedge against inflation...
China May Buy $1 TRILLION of Gold: Bloomberg
Bloomberg talks to an analyst who says China may buy as much as $1 trillion in gold, as the dollar crumbles into a pitiful heap on the floor.
Gold Reserves Per Person, By Country (Where's the US?)
Fascinating chart shows a list of countries and the amount of money they hold on a per-citizen basis.
China Building a New Fort Knox
If you think the recent, highly-publicized gold-buying mania is merely the result of a handful of panicking investors, urged along by a couple contrarian billionaire types... think again.