Wednesday, May 6, 2015

China has lot more Gold reserves Dennis Gartman thinks

China presently says that it has 1,054 tonnes of gold in its reserve position, making it the 7th largest official gold holder, surpassed last year by Russia which overtook China following Moscow’s gold purchases which we thought were intended to reduce Russia’s dependence on the dollar. 

Russia, officially, has 1,207 tonnes of gold in its reserve position and that gold is approximately 13% of the state’s overall “currency” reserves. China’s gold holdings, on the other hand, as a percentage of its total reserves are a scant 1%.

We suspect that the real level of Chinese gold reserves is much closer to 2,000 tonnes rather than the official 1,054 tonnes noted above and that China has been adding to those reserves surreptitiously via Hong Kong. By comparison, the US “officially” has a bit over 8,100 tonnes of gold on hand; Germany as nearly 3,400; the IMF has 2,800; Italy has 2,450 and France has 2,435.