China is already the world’s largest gold miner, and many analysts now assume – following the country’s announcement last year that it had been building up its gold reserves for six years unknown to the West – that it is still expanding its gold holdings in a way that does not necessarily show the gold going into official reserves. And now it appears to be looking elsewhere to purchase supplies of the yellow metal without overtly impacting the market.
What is significant, perhaps, is that this suggests that China’s commitment to gold is both ongoing – and likely to increase. The country, through its financial institutions and state television advertising, has been persuading its ever growing middle classes to purchase gold (and silver) as a good investment. There seems little doubt that the state is doing the same thing itself as a means of diversifying its huge reserves. LINK...
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Folks, this is a very important development because China is the worlds largest holder of U.S. debt and if they are trying to quietly accumulate gold with out disturbing the market, then they obviously know that their U.S. dollar denominated reserves are at risk of losing value and they want to buy as much gold as possible at low prices. Yes, I said low prices. It's clear to me that China is very bullish on gold even at these levels. BK
