It is no secret that even after recently finding it's largest ever gold mine, the Chinese are still purchasing huge amount of gold in market instead of selling. It is surely for currency war.
https://www.rt.com/business/436814-china-gold-reserves-increase/
Is China secretly building up its huge gold stockpile?
Published time: 25 Aug, 2018 07:20
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© Bobby Yip / Reuters
Official data from the People’s Bank of China (PBOC) shows the country’s gold reserves have not increased since 2016, when Donald Trump was elected US president. They stayed unchanged at 59.24 million ounces (1,843 tons).
As of the end of June, the PBOC valued its precious metal reserves at $74.1 billion.
Analysts, however, have raised doubts that Beijing has really stopped accumulating gold. They claim a potential trade war with the US and this year’s slump in gold prices are reasons for China to buy.
“The strategic imperative is probably still there to add some gold to reserves quietly bit by bit,” Philip Klapwijk, managing director of Precious Metals Insights, told Bloomberg. The expert, who has tracked precious metals for nearly 30 years, said,
“The reason to own gold as a portfolio diversification is even better given the rather strained relations with the US.”
As one of the top gold holders, China has been aggressively accumulating gold reserves to cut its dependence on the US dollar, according to Singapore’s BullionStar precious metals expert Ronan Manly. In an interview with RT, he
said that the combined China-Russia gold reserves could shake US dominance in the global economy.
READ MORE: Chinese yuan becomes IMF reserve currency, first new addition since ‘99
China has gone long periods without revealing increases in its gold holdings. In 2015, for the first time in six years, the PBOC announced a 57-percent jump in reserves to 53.3 million ounces. The announcement coincided with the adoption of stricter IMF rules for foreign reserves and debt data as the government pushed for the yuan to be included in the Special Drawing Rights basket. The IMF added the Chinese currency in October 2016, the last month that the PBOC announced an increase.
For more stories on economy & finance visit RT's business section
https://www.bloomberg.com/news/arti...s-it-may-have-found-china-s-biggest-gold-mine
Shandong Gold Says It May Have Found China's Biggest Gold Mine
Bloomberg News
March 28, 2017, 7:04 PM PDT
Shandong Gold Group Co., China’s No. 2 producer by output, said it discovered deposits in eastern China that could be the nation’s largest discovery as it pushes to add reserves.
https://www.bullionstar.com/blogs/k...it-has-been-found-2000m-undersea-in-shandong/
BullionStar Blogs
Koos Jansen
Posted on 11 Nov 2015 by
Koos Jansen
Largest Ever Chinese Gold Deposit Has Been Found 2,000m Undersea In Shandong
The largest ever gold deposit in China has been found in the East China Sea, near the Sanshan Islands in the Shandong province, at a depth of 2,000 meters, the
People’s Daily Online reported on Tuesday.
The Shandong Provincial No. 3 Institute of Geological and Mineral Survey announced on Monday the
massive gold deposit in the sea near the city of Laizhou holds 470.47 tonnes of gold.
The vice director of the Shandong Provincial No. 3 Institute, Ding Zhengjiang, said the gold deposit is part of a belt that lies deep at the sea bottom.
“It’s very difficult to locate and set up the drilling platforms at sea,”
Ding said. The project manager
Zhang Junjin said, “drilling holes into underground rocks that are more than 1,000 meters deep is a big challenge. Normally in China, gold mine prospection is conducted within 800 meters underground. The discovery of a gold deposit lying 2,000 meters undersea provides new drilling technology for future gold mining,” (Quotes by the
People’s Daily Online).
Owned by Laizhou Ruihai Mining Ltd, the
preparations for China’s first undersea gold mine took three years and involved more than 120 kilometers of drilling, with 67 sea drilling platforms and nearly 1,000 geological workers.
Courtesy People’s Daily Online.
At a current gold price on the
Shanghai Gold Exchange of ¥225 yuan per gram for gold having a fineness of 9999, the deposit is worth ¥105.9 billion yuan, or more than $16 billion US dollars. However, if the Chinese want to mine the gold at the bottom of the ocean the costs would be very high, assuming they can develop the technology for off-shore mining.
As on-shore gold reserves are globally being depleted, off-shore gold mining initiatives are increasing. In June 2015
The Times Of India reported exploration has begun for mineral deposits and precious metals like gold and silver in the Southern Indian Ocean at a geological junction where three tectonic plates meet near Mauritius.
In 1949 China’s domestic mining output was a little over 4 tonnes a year. Currently, China is the largest gold miner globally; in 2014 China produced 452 tonnes of gold. The
China Gold Association recently disclosed domestic mining output reached 357 tonnes in the first three quarters of 2015, which is 476 tonnes of gold annualized, up 3.5 % y/y.
Most notably, Chinese domestic mining has increased significantly since the late seventies when the country started to open up under the guidance of
Deng Xiaoping. It’s being thought that
half way the nineties China became a net gold importer. Ever since China has not exported its domestic gold mining output and ramped up gold import to well over 1,200 a year since 2013.
Estimated above ground gold reserves in China are at least 13,743 tonnes, of
which 1,723 tonnes are owned by China central bank the People’s Bank Of China, and 12,021 tonnes owned by the private sector.
Koos Jansen
E-mail Koos Jansen on:
[email protected]
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http://heartlandpreciousmetals.com/...-currency-crisis-albeit-unstated-is-underway/
Russia and China ‘Furiously’ Buying Up Gold As “a Global Currency Crisis – Albeit Unstated – is Underway”
A larger global currency shift is underway…
And it may be happening much more quickly than anyone has realized.
Things are definitely in motion. Call it a game of musical chairs, or an exercise in rearranging chairs on the Titanic, or just that a tilting balance of power. Just don’t make the mistake of thinking this is all routine.
As
Michael Snyder just reported:
The absolutely stunning decision by the Swiss National Bank to decouple from the euro has triggered billions of dollars worth of losses all over the globe.
[…]
And these are just the losses that we know about so far. It will be many months before the full scope of the financial devastation caused by the Swiss National Bank is fully revealed.
But of course the same thing could be said about the crash in the price of oil that we have witnessed in recent weeks. These two “black swan events” have set financial dominoes in motion all over the globe. At this point we can only guess how bad the financial devastation will ultimately be.
The key to understanding how the hammer will fall may lie in:
gold.
In the material world that governs politics and economics, there has always been one golden rule: he who has the gold makes the rules.
Put China at the top of the next generation of rule makers, then.
China has been quietly stockpiling gold for years now. In fact, it is stockpiling so much gold that many have speculated that it may be building a gold-backed yuan currency that would make the Dollar pale in comparison on the global market.
Bottom line: no one knows just exactly how much gold China has amassed:
Buying surreptitiously allows Beijing to buy bullion at bargain prices;
if the world knew how much gold China was really amassing, a run on gold the likes of which the globe has never seen would likely ensue. “We believe China is controlling the gold price because it is buying in such a way so as not to push prices up.” That’s the opinion of respected precious-metals analyst Julian Phillips of The Gold Forecaster, along with a host of other informed sources. (
source)
It is widely believed that China has accumulated larger – possibly much larger – reserves since. (
source)
Lots of other countries are rapidly buying up gold, too, including – Serbia, Greece, Ecuador, Mexico, Kazakhstan, Kyrgyzstan, and Tajikistan.
But reportedly no one is buying gold at a faster pace than Russia.
Back in August it was
reported that:
Russia’s increase is the most dramatic, according to the recent report from the IMF. The Russian central bank has almost doubled its gold holdings within the last 5 years to 1,094.8 tonnes in June of this year. China’s Central Bank followed with an increase of 75% from its holdings in 2009.
Bloomberg reported in November:
The country has tripled its gold reserves since 2005 and is holding the most since at least 1993, IMF data show.
There is little doubt that gold plays a major factor in Russia’s posturing during a global showdown that involves proxy war and military tensions in the Ukraine, Syria, Iraq and other parts of the globe.
Moscow’s purchase of bullion and the assault on the bank can be seen as tactics of a single strategy designed to break the monopoly of the dollar. Gold is Russia’s hedge against that hegemony; it can’t be hacked.
More than that, Putin has been positioning his motherland to team up with China to solidify the emerging BRICS system which aims to thwart decades of Anglo financial dominance with a un-dollar currency system that will also include a development bank.
Russia’s response has been to buy gold and turn east, cementing deals with China and, it would seem, firing the opening salvos in a cyber currency war with the U.S. (
source)
Warnings have sounded about a tipping of the global balance:
Russia is also increasing its gold reserves. China and Russia have been exchanging their U.S. dollar reserves and buying physical gold. Last year we speculated that this dynamic would create a shortage in gold leading to much higher prices. Russia and China now rank in the top ten countries by gold reserves.
With Russia now in what appears to be a currency war with the U.S., they may find a willing partner in China to create an alternative international financial system that does not rely upon or use the dollar. Irrespective of either country’s intentions, their physical gold buying sprees continue unabated. (
source)
To that end, Russia has been amassing as much gold as possible, in a bid to outmaneuver its enemies in a silent economic war to hold onto its independence and further project its status.
Nearly every bit of gas and oil that Russia sells to neighbors in Europe and Asia is converted from dollars into gold reserves – and even with the collapsing oil price, that amount could still be staggering.
Many have pointed to the gold and oil trade off as
Putin’s grand chess strategy:
Thus, the Western world, built on the hegemony of the petrodollar, is in a catastrophic situation. In which it cannot survive without oil and gas supplies from Russia. And Russia is now ready to sell its oil and gas to the West only in exchange for physical gold! The twist of Putin’s game is that the mechanism for the sale of Russian energy to the West only for gold now works regardless of whether the West agrees to pay for Russian oil and gas with its artificially cheap gold, or not.
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