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Monday, July 20, 2015

BULLDOG75: CHINA HOARDS GOLD AS #1 PRODUCER & CONSUMER from OOM&F

Check the chart post article below; well it needs re-vision.  

The US cannot account for much of its unaudited gold. China on the other hand, has not reported all of its purchases and in country hoarding.  Thus we have China and the US in a near tie for 'Gold Possession'.  The US flaunts that it has gold while China denies its hoarding & enormous stockpile.

Metal prices are near its summer low.  BRICS desires to corner the market and establish 'Shanghai Rules' on the GCR re-evaluation of metals.  BRICS strategy: Buy low, mine, hoard, corner the market, re-value gold to $5,000 on the GCR, sell high as new reserve currencies eventually take effect. Shanghai becomes the Metals Mecca.
BRICS forces the 'squeeze play' to the East.
 
Iraq's metals, diamonds and oil are boundless.  
Gold & Silver is a currency.  
Our manna comes forth.
 
Blessings & I Love You All,
BULLDOG75
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China's Been Hoarding Gold And It Isn't Likely to Stop

7/20/15
With China finally coming clean that it’s been the second-biggest buyer of gold over the past six years, analysts and traders say the purchases will continue.

In the first update since 2009, the People’s Bank of China said on Friday that it owns about 1,658 metric tons, implying purchases of 100 tons a year. The stockpile may eventually reach more than 5,000 tons, according to Robin Bhar, an analyst at Societe Generale SA in London.
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“China hasn’t been very open about its strategy, so what matters now is whether the market believes they intend to continue buying,” said Joni Teves, an analyst at UBS Group AG in London. “They do appear to leave the door open to further purchases, which should limit the downside for gold.”

While other big bullion holders like Russia and Germany update their holdings every month, China hasn’t reported a change until last week. The new data shows the country is using the metal to diversify foreign-exchange reserves as policy makers push for the yuan to be added to the International Monetary Fund’s basket of currencies.

China bought 604 tons of gold since 2009, second only to Russia, according to data from the central bank and IMF. The total holdings make China the world’s fifth-biggest gold owner.

The annual gold purchases equal about 2 percent of global demand, and there’s “significant scope” for more Chinese additions, the London-based World Gold Council said Friday. The nation has been buying gold even as prices slumped from a record in 2011 to a five-year low.
‘Keep Buying’
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“Their motivation is reserve diversification, and they’ll probably keep buying,” Georgette Boele, a strategist at ABN Amro Bank NV in Amsterdam, said by phone. “We’ll probably only hear when they’re done.”

China’s purchases since 2009 are valued at about $26 billion, based on average prices.
The metal sank to a five-year low on Monday, losing as much as 4.2 percent to $1,086.18 an ounce. It traded at $1,115.45 by 10:03 a.m. in London. Investors are shunning bullion on expectations that the Federal Reserve will raise interest rates this year, eroding demand for an asset offering returns only through price gains. Bullion is 5.8 percent lower in 2015 after dropping the previous two years.

“We can’t be sure about what China is going to do, the evidence is that they have been buying at a far lower pace than the bugs were expecting,” Leon Westgate, an analyst at ICBC Standard Bank Plc in London, said by phone Friday. “There is no way that the PBOC will ever maintain gold as a fixed percentage of foreign reserves.”

‘Special Asset’

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While the PBOC said Friday that gold is a “special asset” and a good way to diversify from currencies, it warned that purchasing large amounts would affect a gold market that’s small in comparison to its foreign-exchange holdings.

The country is the world’s largest gold producer and vies with India as the top consumer. After lifting a ban on bullion trading and opening the Shanghai Gold Exchange in 2002, the bourse is now the largest physical bullion marketplace, according Xu Luode, secretary general of the exchange.

“As the banking community in China becomes more sophisticated, we’re going to continue to see gold move east,” Peter Thomas, a senior vice president for metals at Zaner Group LLC in Chicago, said by phone Friday. “We’re going to see gigantic stockpiles.”

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