← Back to All Videos

China Increases Gold Reserves

Blog Dec 2, 2010

Shen Xiangrong, chairman of the bourse, told a conference in Shanghai today that China doesn’t normally publish its gold trade figures or comment on its reserves.  However, China released their gold figures for this year and revealed that it brought in 209 metric tons of gold this year compared to only 45 metric tons in 2009.  That is a fivefold increase in just 10 months!  China is concerned with inflation and they see gold as a good store of value.

China is the world’s largest producer of gold, and the figures released do not include what they produced; only what they imported.  China is hoarding all of the gold they produce.  Last year China produced 314 metric tons of gold and that figure is estimated to jump to 340 metric tons this year.  At this rate it means they are retaining over 500 metric tons per year.  That is a lot of gold.

China estimates that 70 to 80% of all the gold imported last year were made into mini-bars which Chinese investors like to own.

Gold has soared over 27% this year as concerns that the trillions of dollars being printed in response to the economic downturn will devalue currencies worldwide.  China’s inflation rate has increased this year to its highest level since 2008.  Therefore China will probably raise rates for a second time this year.

A lot of the money that gets printed flows into China’s economy in the way of emerging market investment.  That puts a lot of excess dollars into their markets causing inflation.  Therefore the Chinese want to own gold as a hedge against inflation.

China understands the importance of owning gold as we move forward in these uncertain economic times.  With QE2 here is the United States and the bailouts of Greece, Ireland and soon to be Portugal and Spain with undoubtedly newly printed money, don’t you think it is smart to own gold too?  This action by central banks will devalue the dollars we hold and decrease our purchasing power.  Gold is the hedge that will maintain our purchasing power.  If you don’t own any gold yet I urge you to do what China is doing and get some.  Buying gold coins is a simple process, just call us and get started today.

Secure Your Future With Gold & Silver

Access expert advice and transparent pricing—backed by decades of leadership in retirement protection.
Schedule Strategy Call

Sources & References In This Article

Similar Posts

Blog Jun 2, 2025

$100 Billion ‘Ghost Field’ Discovery Could Power America for 30,000 Years

Learn More
Blog May 19, 2025

ECB Sounds Alarm on Gold Surge – Fears Will Trigger Financial Collapse

Learn More
Blog May 14, 2025

The Economic ‘Storm’ Will Get Worse: Is the U.S. Headed for a Radical Reset?

Learn More
Blog May 5, 2025

Will U.S. Basel III Unleash Gold? BIS’ New Reset Plan

Learn More
Blog Apr 30, 2025

China ‘In a Panic’ to Start War, The U.S. is Preparing : Gordon Chang

Learn More
Blog Apr 29, 2025

O’Leary: Mark Carney Faces ‘Hell of a Time’ Fixing Trudeau’s Economy, Sees Early Election

Learn More
Blog Apr 28, 2025

No Gold? You’re Doomed In The Reset War

Learn More
Blog Apr 25, 2025

Fed’s Desperate Bid to Stop Gold Price – Why it Will Backfire

Learn More