Forbes: China Chases Gold Supremacy as it Builds a U.S. Dollar Alternative
Article by Tim Treadgold in Forbes
China is rapidly closing the “gold gap” with the U.S. as it quietly builds what is believed to be world’s second largest stockpile of gold.
Unofficial estimates put China’s gold reserves at up to 5500 metric tons, more than double the officially reported holding of 2303.5 tons.
If correct, the 5500-ton calculation by Australia’s ANZ Bank, lifts China from seventh on the gold ownership league table to second, above Germany’s 3350.3 tons but behind the 8133.5 tons owned by the US.
Chinese gold buying, reported and unreported, has been the major factor in the steep rise in the gold price over the past three years, including a 54% increase in the last 12-months to $4038 an ounce.
Building its reserves is just one part of China’s gold strategy which is part of a campaign to reduce exposure to the U.S. dollar.
Other features of the Chinese gold rush include the creation of a world-class gold trading hub centered on the Shanghai Gold Exchange (SGE) and the relaxation of rules ......