China Gold Reserves Rise To 60.26 Million Ounces Worth Just $79.5 Billion

IMG Auteur
Published : March 07th, 2019
518 words - Reading time : 1 - 2 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : Today's Article

China increased its gold reserves for a third straight month in February, data from the People’s Bank of China (PBOC) showed this morning.

The value of China’s gold reserves rose slightly to $79.498 billion in February from $79.319 billion at the end of January, as the central bank increased the total amount of gold reserves to 60.260 million fine troy ounces from 59.940 million troy ounces.

The People’s Bank of China (PBOC) did not explain why it bought more gold. It is almost ertaintly in large part due to concerns about the Chinese, U.S. and global economic outlook and the outlook for the dollar in the coming months and years.

China’s foreign exchange (fx) reserves rose to their highest in six months in February. There are growing concerns over U.S.-China trade talks and the potential for trade wars and the impact of this on their respective economies.

Chinese foreign exchange (fx) reserves, the world’s largest, rose by $2.26 billion in February to $3.090 trillion, central bank data showed on Thursday, marking the highest level since August 2018. The U.S. trade deficit hit its highest in a decade in 2018, in a resounding failure for President Donald Trump’s global trade offensive, U.S. government data showed yesterday.

It is important to realise that the PBoC still have a very meager 2.4% of its foreign exchange reserves in gold, so their gold diversification is likely in it’s infancy. John Reade of the World Gold Council notes on Twitter that the last time the PBoC reported regular monthly increases in gold holdings, it continued for 24 months.

We have long pointed out two other entities, besides the PBOC, have also been buying gold – the State Administration of Foreign Exchange (SAFE) and the China Investment Corporation (CIC).

These potentially sizeable sources of demand are not included in the PBOC figures.

It is important to note this lack of transparency regarding total aggregate Chinese central bank and sovereign fund demand. Therefore, it is likely that we are underestimating Chinese and thus global gold demand.

China may be adopting the Russian strategy of being very public in announcing their increasing gold reserves as they attempt to position the yuan as an alternative reserve currency to the world’s current reserve currency the dollar.

News and Commentary

Gold Prices (LBMA PM)

06 Mar: USD 1,285.55, GBP 978.82 & EUR 1,136.82 per ounce
05 Mar: USD 1,285.00, GBP 975.19 & EUR 1,134.78 per ounce
04 Mar: USD 1,287.45, GBP 972.93 & EUR 1,135.14 per ounce
01 Mar: USD 1,309.95, GBP 989.27 & EUR 1,152.23 per ounce
28 Feb: USD 1,325.45, GBP 996.21 & EUR 1,162.82 per ounce
27 Feb: USD 1,326.45, GBP 998.02 & EUR 1,164.09 per ounce

Silver Prices (LBMA)

06 Mar: USD 15.09, GBP 11.49 & EUR 13.36 per ounce
05 Mar: USD 15.11, GBP 11.47 & EUR 13.33 per ounce
04 Mar: USD 15.16, GBP 11.50 & EUR 13.38 per ounce
01 Mar: USD 15.56, GBP 11.75 & EUR 13.67 per ounce
28 Feb: USD 15.81, GBP 11.89 & EUR 13.85 per ounce
27 Feb: USD 15.86, GBP 11.91 & EUR 13.92 per ounce

<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
Mark O'Byrne is executive and research director of www.GoldCore.com which he founded in 2003. GoldCore have become one of the leading gold brokers in the world and have over 4,000 clients in over 40 countries and with over $200 million in assets under management and storage.We offer mass affluent, HNW, UHNW and institutional investors including family offices, gold, silver, platinum and palladium bullion in London, Zurich, Singapore, Hong Kong, Dubai and Perth.
WebsiteSubscribe to his services
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Jim Cook Interviews Ted Butler: JPM, Silver Investors More
23 MayS W.
850 ounces ?? that's nothing. typo As for manipulation..read keith weiner. Silver still in downtrend that's been going for 8 years so ...
Crisis? What Crisis?
11 Maycarlomar-1
This is an excellent article, it deserves 5 STARS, your rating system is failing. I wanted to give it 5 STARS and the system marked obly one. M...
Crisis? What Crisis?
13 MayJ.-1
Yes! A return to constitutional government is what is in order.
More Trouble in Mexico: Second Largest Silver Mine Suspended Operat...
06 Mayrokdok25
I thank you for outing a thoroughly rapacious operation which not only harms the environment and its local communities, but which damages the reput...
Body Armor: Because If You’re Shooting Down Range, You Can Bet Some...
04 Mayprljr-1
Ah, sympathy for the triggered child. how sweet
Tom Petty was Right
01 Maywalkingdead1
The always insightful Mr Kunstler had me captured with his opening sentence: "anxious, fearful, and stressed-out", which pretty much describes my o...
Boeing 737 Max Unsafe to Fly: New Scathing Report by Pilot and Soft...
30 Aprsneezy671
The "Anything to save a few bucks" routine and we the passengers lose big time. Replacing costly intense pilot training for particular aircraft wit...
Body Armor: Because If You’re Shooting Down Range, You Can Bet Some...
27 AprWatchdoctor0
Hey, I love ya, and so do a lot of the other guys. You hang in there ! https://www.youtube.com/watch?v=msn-mDaJInA
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS