MZUBAIR
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China world's 5th largest gold holder
BEIJING: Large scale hoarding of gold by China may have been partly responsible for the near tripling in prices of the yellow metal in the past six
years. Figures released by the countrys State Administration of Foreign Exchange shows Beijing boosted its gold reserves by 76% since 2003 to become the 5th largest holder of gold in the world.
China now has 1,054 tons of gold after adding 454 tons in the past six years. Its stock of gold is worth 31 billion at current prices. Chinese purchases of the yellow metal were mainly aimed at hedging its other investments from depreciation risks, sources said.
Indications are that China would continue buying gold as a means to utilize part of its vast foreign exchange reserves at $1.95 trillion as on March 31, which the worlds biggest. It has surpassed Switzerland, which has reserves of 1.040 tons of gold.
Yet, the Chinese stock of gold is just 2.28% of the world reserves against 31% held by the United States. The US holds 8,134 tons, followed by Germany with 3,413 tons, France has 2,487 tons and Italy 2,452 tons, according to the World Gold Council. The International Monetary Fund has 3,217 tons.
The international price of gold has almost tripled to more than $900 an ounce from $337 in the past six year.
Chinese Premier Wen Jiabao recently expressed concern that the dollar will weaken and this would result in erosion of the value of Chinas holdings of US Treasuries. China is the biggest holder of US government debt with a total investment of $744 billion at the end of February.
BEIJING: Large scale hoarding of gold by China may have been partly responsible for the near tripling in prices of the yellow metal in the past six
years. Figures released by the countrys State Administration of Foreign Exchange shows Beijing boosted its gold reserves by 76% since 2003 to become the 5th largest holder of gold in the world.
China now has 1,054 tons of gold after adding 454 tons in the past six years. Its stock of gold is worth 31 billion at current prices. Chinese purchases of the yellow metal were mainly aimed at hedging its other investments from depreciation risks, sources said.
Indications are that China would continue buying gold as a means to utilize part of its vast foreign exchange reserves at $1.95 trillion as on March 31, which the worlds biggest. It has surpassed Switzerland, which has reserves of 1.040 tons of gold.
Yet, the Chinese stock of gold is just 2.28% of the world reserves against 31% held by the United States. The US holds 8,134 tons, followed by Germany with 3,413 tons, France has 2,487 tons and Italy 2,452 tons, according to the World Gold Council. The International Monetary Fund has 3,217 tons.
The international price of gold has almost tripled to more than $900 an ounce from $337 in the past six year.
Chinese Premier Wen Jiabao recently expressed concern that the dollar will weaken and this would result in erosion of the value of Chinas holdings of US Treasuries. China is the biggest holder of US government debt with a total investment of $744 billion at the end of February.
