China is seeking to diversify its foreign exchange reserves by increasing its gold holdings by 1% in August.
China, which is among the most gold consuming countries in the world after India, has increased its gold reserves to 54.45 million troy ounces in August, against 53.93 million ounces one month earlier.
The People’s Bank of China among the world’s largest reserve of gold.
The Central Bank of China joined Russia and Kazakhstan among central banks with the most gold in their reserves. The country is moving towards greater transparency in its data, strengthening its presence in commodities trading and promotes the international role of the yuan. The devaluation of the yuan last month are signs of a transition to a more market-oriented exchange rate mechanism.
According to data from the World Gold Council, China still has just 1.6% of its foreign reserves in gold bullion, against:
- 73% for the United States.
- 67% for Germany.
- 65% for France and Italy.
Gold bullion remains a large part of the assets of many central banks, decades after that gold ceased to be used to back the paper money.
China’s central bank said on July 17 that the quantity of its gold reserves amounted to about 1658 tons against 1054 tons in 2009. The United States has meanwhile largest gold reserves, amounting to 8133.5 tons.
Will China continue to increase to buy gold to increase its gold reserves ?
Eliseo Jordan, chief economist at Australian Bullion trader Co. in Sydney, said by email before the publication of the Chinese data:
« The accumulation of China physical gold is likely to continue. The distribution of China gold reserves in proportion to its foreign exchange reserves is extremely low compared to many countries in the developed markets. »
Russia has more than tripled its gold reserves since 2005 and Kazakhstan raised its holdings each month for almost the last three years. While central banks are buying more gold, investors reduced their holdings in exchange-traded fund backed by bullion around the lowest level since 2009.
The gold price has lost about 40% of its value from its course of 2011. The price of gold was at $ 1.125 an ounce on Wednesday 1 October.
All news and infos about gold on
[button type= »info » target= »_self » link= »http://orobel.biz/en/info/news.html » icon= »info-sign »]Orobel.biz[/button]