China's gold reserve way up

[Tempest]

http://www.marketwatch.com/news/story/ch...D%7D&dist=msr_1
Quote:
The increase makes China the world's fifth-largest holder of gold, just ahead of Switzerland, and among the six nations plus the International Monetary Fund that have reserves of more than 1,000 metric tons.
Hu said that China's gold reserves had risen by 454 metric tons since 2003 and that the total was being reported to the IMF per the organization's rules.
The comments are China's first public acknowledgement in more than five years that its gold reserves had increased.
The new figure is 76% higher than the 600 metric tons reported at the end of March, a level that had been unchanged since December 2002.

I wonder what China thinks of the dollar...

 

[PandaBear]

1) We can't let it tank because we have too much of it.
2) We can't let it rise because we need them American to buy more of our stuff.

 

[crinkles]

i'll just have a kilo of that. they won't even notice it!

 

[buster]

China's GDP is set to surpass the U.S. by 2020.

 

[Gary Allan]

Originally Posted By: PandaBear
1) We can't let it tank because we have too much of it.
2) We can't let it rise because we need them American to buy more of our stuff.


Japan faced the same dilemma. It's a trap that there is no easy escape from. When you have one main customer ..it's not a customer ..it's a partner.

 

[Kruse]

Originally Posted By: Gary Allan

Japan faced the same dilemma. It's a trap that there is no easy escape from. When you have one main customer ..it's not a customer ..it's a partner.


China has a lot of so called "partners". The US is not the only one. A lot of Japanese companies build their products in China, as well as other companies from all over the world. We are a big customer of China but by means not the only one.

 

[Gary Allan]

Yes, but Japan never had to do this until they reached parity with us.

What happened to Japan, which may well happen to China, is that they had to invest in the USA to get their money's worth out of all the US$ they had around that were worth a whole lot less after they were forced to dump them on the market as a last resort. Actually, due to the mass difference in worth, the Jyen doubled instead.

Now China is sitting on a bunch of toilet paper that is redeemable in US$. They can either roll it up and use it as a new domestic product ..or buy up US interests instead.