Came across this article written by Lawrence Williams on a subject that l have had an interest and wrote a few articles on. China's accumulation of gold, and how they have been able to keep the world from understanding how much metric tons of gold they actually own.
China has been playing this game since 2009, with a straight face, and declaring the same amount of gold since 2009. How do they get away with all of this? Lawrence Williams reveals some of the strategists, China has been using rather effectively.
The key here for China is keeping gold prices down, for the simple reason they can accumulate more metric tons at a bargain. This makes perfect sense, buy low sell high, what we all aim at when investing. So keeping the true amount of how many metric tons they actually have, works wonders for this concept.
Lawrence Williams shares this article on Seeking Alpha
There is much speculation over the quantification of China's gold reserves. Are they only 1,054 metric tons as the official figures would have us believe? Or are they considerably higher as many gold analysts suggest? And what game is China playing if they are?
The Chinese impact on global demand is key to likely gold price performance in the months and years ahead and thus of major significance for the investor in gold bullion, ETFs and gold stocks. China is already almost certainly the world's largest consumer of gold this year and is likely to absorb at least 1,500 metric tons of the yellow metal purely through imports through Hong Kong plus its own gold output - it is currently the world's No. 1 producer with 2013 output estimated as likely to be in order of 430 metric tons by the China Gold Group.
The Complete article by Lawrence Williams
All The Best,
Joseph F. Botelho One Gram at a Time
— Gary Vaynerchuk (@garyvee) November 15, 2013
