Posted on 02/10/2016 6:35:37 PM PST by BenLurkin
China's government doesn' share exact figures, but the vast majority of gold heading into mainland China passes through Hong Kong, which does make its records public.
Gold imports to China have surged over 700% since 2010, according to the latest data from Hong Kong.
Exactly what China is doing with all that gold remains somewhat of a mystery. The increasingly wealthy Chinese are buying, but that doesn'txplain all the jump in demand.
The government says its gold reserves have grown only a little in recent years. Experts question whether China is telling the whole truth.
"hina has a lot more gold than they declare,"says John LaForge, head of Wells Fargo's commodities team.
China now consumes about 40% of the gold that comes out of the ground every year, according to LaForge.
The Hong Kong data alone show that China went from importing just over 100 tons of gold in 2010 to just under 1,000 tons last year.
In addition to all the imports, China is also the world's largest gold miner, according to the World Gold Council. So it' both buying and unearthing a lot of gold each year.
(Excerpt) Read more at kspr.com ...
China knows what’s up, and gonna go down.
Sooner than later..
Are they buying any Wolfram?
Kyle Bass Hayman Market China Analysis
http://www.scribd.com/mobile/doc/298922249/Hayman-Market-Commentary-on-China-February-2016
Hayman Market Commentary on China - February 2016
12 pages
February 10, 2016
The $34 Trillion Experiment: China’s Banking System and
the
World’s
Largest Macro Imbalance
Dear Investors, Over the past decade, we have worked diligently to identify anomalies in financial systems, governments, and companies around the world. We have been vigorously studying China over the last year, with the view that the rapid credit expansion in the Chinese banking system will result in significant credit losses that will require the recapitalization of Chinese banks and materially pressure the Chinese currency. This outcome will have many near-term and long-term effects on countries and markets around the world. In other words, what happens in China will not stay in China. The unwavering faith that the Chinese will somehow be able to successfully avoid anything more severe than a moderate economic slowdown by continuing to rely on the perpetual expansion of credit reminds us of the belief in 2006 that US home prices would never decline. Similar to the US banking system in its approach to the Global Financial Crisis
(“GFCâ€), China’s banking system has increasingly
pursued excessive leverage, regulatory arbitrage, and irresponsible risk taking. Recently, we have had numerous discussions with various Wall Street firms, consultants, and other respected China experts, and they almost all share the view that China will pull through without a reset of its economic conditions. What we have come to realize through these discussions is that many have come to their conclusion without fully appreciating the size of the Chinese banking system and the composition of assets at individual banks. More importantly, banking system losses -
which could exceed 400% of the US banking losses incurred during the subprime crisis
- are starting to accelerate. Our research suggests that China does not have the financial arsenal to continue on without restructuring many of its banks and undergoing a large devaluation of its currency. It is normal for economies and markets to experience cycles, and a near-term downturn that works to correct the
current economic imbalances does not qualitatively change China’s
longer-term growth outlook and transition to a service economy. However, credit in China has reached its near-term limit, and the Chinese banking system will experience a loss cycle that will have profound implications for the rest of the world. What we are witnessing is the resetting of the largest macro imbalance the world has ever seen.
The article says that experts question whether China is telling the whole truth.
So you have to be an expert to believe the Chicoms may not be telling the truth? Boy have i been put in my place!
“Chinese banking system losses could exceed 400% of the US banking losses incurred during the subprime crisis.”
In a totalitarian society people don’t keep their wealth in money.
Buy tungsten futures and shares in gold paint.
Trump has been warning us about CHAI - NAH for how long, now??
I heard that story, too..!
Think about it.....if China owned all the gold in the world, other than for industrial uses it would be worthless.....tons of pretty metal
Either that or all the paper money in the world would be worthless.
Didn’t they reveal last year that they have much less gold than people thought?
It’s quite a story.
http://www.whiteoutpress.com/articles/2015/q1/germany-tests-us-stored-gold-says-no-tungsten/
Not if Ted Cruz wins. Cruz wants to take us back to the gold standard. Which would give China, the largest gold producer, control over our currency.
Not if Ted Cruz wins. Cruz wants to take us back to the gold standard. Which would give China, the largest gold producer, control over our currency.
She mean SOMETHING.
Absolute nonsense. They can produce gold—but it costs money to produce it. The profit margin is not large.
I’ve heard the theory that China wants the yuan to replace the dollar as the world’s reserve currency.
As the theory goes, huge gold reserves held by China will help make this happen. In theory.....
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