Gold ‘Unlikely’ to Be Main China Reserve Investment

[sandwind]

“Gold is unlikely to become a primary investment for China’s reserve,” Yi said. “The size of the world’s gold market is small. China’s purchase will push up the prices. That will also hurt Chinese gold consumers.” Private holdings in China are more than 3,000 tons, Yi said.


“Medium to long term, gold continues to be supported by investors looking to hedge against weakness in currencies like the euro and the dollar,” said China International’s Li.


http://www.bloomberg.com/apps/news?p...d=a80hbEcNrCdc

[jpatter666]

Re: Gold ‘Unlikely’ to Be Main China Reserve Investment

Watch what we do, not what we say.

It's worth noting that China is the #1 gold producer and can (and have) add much of that to reserves directly.