It’s Time To Buy China

by James Gruber on October 12, 2012

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{ 2 comments… read them below or add one }

peterpalms October 24, 2012 at 5:14 am

. China has imported more gold in six months than Portugal’s entire gold reserves

China continues to do one thing. Buy. Because while earlier today we were wondering (rhetorically, of course) what China is doing with all that excess trade surplus if it is not recycling it back into Treasury’s, now we once again find out that instead of purchasing US paper, Beijing continues to buy non-US gold, in the form of 68 tons in imports from Hong Kong in the month of June. The year to date total (6 months)? 383 tons. In other words, in half a year China, whose official total tally is still a massively underrepresented 1054 tons, has imported more gold than the official gold reserves of Portugal, Venezuela, Saudi Arabia, the UK, and so on, and whose YTD imports alone make it the 14th largest holder of gold in the world. Realistically, by now China, which hasn’t provided an honest gold reserve holdings update to the IMF in years, most certainly has more gold than the IMF, and its 2814 tons, itself. Of course, the moment the PROC does announce its official updated gold stash, a gold price in the mid-$1000 range will be a long gone memory.

Meanwhile china is buying up outright ownership world wide of natural resource companies with its Federal reserve Notes paid to it for its exports to the U.S.

When the fourth collapse of the Central Bank of the U.S., the Fed occurs outright ownership of resources is to be preferred to certificates of share ownership in any stock markets.

Jayasinghe October 17, 2012 at 5:12 am

I’m here with complete agreement with you. If U.S. and EU start humming, China will jump on the wagon. I’m currently pick up Euro debris. May be I’ll be able to build some thing.

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