China raises official gold holdings for the first time since 2009

[swissaustrian]

ZH reports that China increased their official gold holdings by 57% or 604 tons in one month :flail: And of course: they didnt buy anything between 2009 and June 2015...

here is the full article:
http://www.zerohedge.com/news/2015-07-17/china-increases-gold-holdings-57-one-month-first-official-update-2009

my take:
1. that is clearly not the full increase since 2009
2. the timing is interesting:
a. they have domestic issues with a slow economy and a crashing stock market
b. the gold price is sitting at a major support (1140) and might crash, should it break down
3. Is this a one time announcement? I don't think so. They are probably going to announce a series of "monthly purchases" from now on until they have reached the actual ammount that they already hold. I'm looking forward to Jim Rickard's take...

 

[ancona]

I think we can safely say that China has something approaching four times what we see in this chart.

 

[pmbug]

One other point...

Recently a media storm erupted over the veracity of China's official numbers:

http://money.cnn.com/2015/07/15/news/economy/china-gdp-economic-statistics/

http://www.cnbc.com/2015/07/15/china-gdp-believe-it-or-not.html

etc.

Maybe they realized the numbers lacked any credibility and they are trying to restore confidence?

Oh, and welcome back sa!

 

[ancona]

When you look at their domestic mining production, none of which leaves the country, then add to that all the gold imported through Hong Kong, even the reported numbers don't add up. It has to be significantly higher.

 

[pmbug]

Koos Jansen posted some thoughts about the China disclosure:

...
With the US having the power to obstruct renminbi inclusion into the SDR, the Chinese have to play it safe. They are required to be transparent about their true gold reserves, but may not want to upset the US by disclosing an official gold reserve figure at 3,500 tonnes. The 1,658 tonnes figure, which is too little to rock the global financial order, though a sign that China assesses gold to be “an important element of international reserve diversification” may thus be an appropriate figure. It’s not in China’s interest to rush into a new international monetary system as they continue to diversify away from the US Dollar.
...

More:

Analyzing PBOC Official Gold Reserves Increment

The People’s Bank Of China (PBOC) has finally updated its official gold reserves from 1,054 tonnes to 1,658 tonnes.

www.bullionstar.com

 

[swissaustrian]

The timing right before the flash crash was certainly interesting whether the Chinese had to do with the crash or not. Maybe somebody wanted to send a message...

 

[pmbug]

Can't let anyone get any exuberant ideas. China releases report showing that they are buying gold (as if anyone in the gold space didn't already know that)? Time to dump 22 tons on the comex...

 

[rblong2us]

It really hurts to see price forced down like this but I think we will have to see price totally crushed in order for no gold to be offered for sale.

Only then can there be a separation from manipulated paper prices.

Kinda makes me wonder if the smashdowns are not an attempt to trigger the separation ?

 

[Christian]

The Chinese represent the largest investors in gold and silver worldwide.