Monday, April 27, 2009

China Gold

BestView has mentioned several times that the devaluation of the dollar by the Bush/Obama spending will drive an appreciation of gold.
This article in the Financial Post discusses the accumulation of gold rather than more of the dollars which will lose their value over time. Since the Chinese own so much of our debt, one might conclude that they share BestView worries about our currency.

SHANGHAI/BEIJING - China revealed on Friday that it had secretly raised its gold reserves by three-quarters since 2003, increasing its holdings to 1,054 tonnes - or a pot worth about US$30.9-billion - and confirming years of speculation it had been buying.

Hu Xiaolian, head of the State Administration of Foreign Exchange, told Xinhua news agency in an interview that the country's reserves had risen by 454 tonnes from 600 tonnes since 2003, when China last adjusted its state gold reserves figure.

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