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China Says Gold No Longer A Key Investment

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http://uk.finance.yahoo.com/news/china-gold-not-key-to-foreign-currency-investment-afp-e0a61f219bbc.html?x=0

China: gold not key to foreign currency investment
8:47, Wednesday 7 July 2010
Gold will not be a key investment for China's massive foreign exchange reserves, its foreign exchange regulator said Wednesday, noting poor returns from the precious metal in the past 30 years.

Poor returns over the last 30 years? They were not poor but non-existent IA.

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http://uk.finance.yahoo.com/news/china-gold-not-key-to-foreign-currency-investment-afp-e0a61f219bbc.html?x=0

China: gold not key to foreign currency investment
8:47, Wednesday 7 July 2010
Gold will not be a key investment for China's massive foreign exchange reserves, its foreign exchange regulator said Wednesday, noting poor returns from the precious metal in the past 30 years.

Poor returns over the last 30 years? They were not poor but non-existent IA.

why did the chose that time frame rather than last 10 years in which case the returns were awesome?

Past performance does not predict future performance.

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why did the chose that time frame rather than last 10 years in which case the returns were awesome?

Past performance does not predict future performance.

Maybe they want to buy more and talk it down a bit first. aybe they think that inflation comes from precious metals prices rather than printing money - inflation is beginning to cause some upset.

Either way I take the punchline with a large pinch of salt.

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Give investors a chance, some have to pop their order into the post box, and wait for the postal order to clear!

Edited by Money Spinner

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sounds like China's buying again :rolleyes:

1188.90 -6.20 -0.52%

Just a little more selling today after a moderate amount of lightening positions yesterday.

Perhaps the Chinese are putting out a double bluff and really are selling hoping to draw in the bulls to keep the prices up as they sell?

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8:47, Wednesday 7 July 2010

Gold will not be a key investment for China's massive foreign exchange reserves, its foreign exchange regulator said Wednesday, noting poor returns from the precious metal in the past 30 years.

... do you believe everything you are being told?

Watch what they do. Not what they say.

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... do you believe everything you are being told?

Watch what they do. Not what they say.

No bigger liar than a central banker talking about money.

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No bigger liar than a central banker talking about money.

It could be a "double agent" type of statement. Truthful but designed to be accepted as a lie in order to prompt a reaction that is contrary to the underlying truth.

In other words they REALLY are getting a bit bearish on gold and the announcement is simple double-speak to lure in buyers who interpret everything a banker says as a lie.

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Perhaps I should sell my physical gold now and take my 300% profit before gold becomes worthless. Chinkie,chinkie biggrin.gif (why are emoticons based on chinamen ? )

Edited by Daft Boy

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property returns have been pretty poor over the past 30 years as well once you take out real inflation

same could be said for USD holdings

so China wants out of gold , USD - what are they going to hold exactly that will create all this wealth out of thin air?

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... do you believe everything you are being told?

Watch what they do. Not what they say.

you could say the complete opposite was true for brown stain

said he was going to sell the gold , and he did

now gold is worth 4 times what it was back then , thanks gordon

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property returns have been pretty poor over the past 30 years as well once you take out real inflation

same could be said for USD holdings

so China wants out of gold , USD - what are they going to hold exactly that will create all this wealth out of thin air?

Agricultural land and mineral extraction rights in Africa. Smart cookies.

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It could be a "double agent" type of statement. Truthful but designed to be accepted as a lie in order to prompt a reaction that is contrary to the underlying truth.

So is that a double-bluff or a double-double-bluff?

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http://english.alrroya.com/content/gold-rebounds-six-week-low-physicals-active

Gold rebounds from six-week low, physicals active

Wednesday, 7 July 2010 at 09:26, Reuters, Singapore

Gold regained strength on Wednesday as bargain hunters snapped up the metal after prices dropped to a six-week low the previous day, while dealers also shrugged off declines in ETF holdings.

Bullion has dropped more than 2 per cent since striking a record above $1,264 an ounce in late June, but turmoil in the financial markets could offer investors a safe haven. Dealers in Asia also noted a pickup in physical buying from jewellers.

Spot gold rose $1.50 to $1,193.00 an ounce by 0232 GMT, having fallen as low as $1,189.30 on Tuesday. Gold had struck a lifetime high on worries the euro debt crisis was spreading and that US economy was slowing.

"I wouldn't be surprised to see gold recover back above $1,200 an ounce or may move even higher in the near term," said David Moore, a commodity strategist at Commonwealth Bank of Australia in Sydney. :)

"At the end of the day, I think the uncertainties in the international economic environment remain significant and they will be supportive for the gold price in the near term."

US gold futures for August delivery fell $1.3 to $1,193.8 an ounce.

The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings slipped to 1,316.481 tonnes by July 6 from 1,318.915 on July 2. The holdings hit a record at 1,320.436 tonnes on June 29.

"At this stage, I wouldn't read too much into that," said Moore, referring to the decline in ETF holdings. "I don't think it's inconsistent with what we're just talking about... may be some profit taking and things like that." :P

The Nikkei edged down on Wednesday as shares of exporters that rose the day before gave back some gains, even after the Wall Street rebounded on Tuesday to end a five-day string of losses.

The euro hovered near seven-week highs on Wednesday while the Australian dollar retained its smart gains, as investors pared long positions in the US dollar on doubts about an U.S. economic recovery.

The physical sector was active in Singapore and Hong Kong, and steady demand from jewellers and other physical buyers led to supply tightness.

"We've been selling gold since last week, but it's difficult to get hold of materials within a short period," said a physical dealer in Singapore, who trades gold bars. "The market may also turn around too quickly. That's why it's difficult for both customers and sellers," he added.

Edited by Crashman Begins

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It could be a "double agent" type of statement. Truthful but designed to be accepted as a lie in order to prompt a reaction that is contrary to the underlying truth.

In other words they REALLY are getting a bit bearish on gold and the announcement is simple double-speak to lure in buyers who interpret everything a banker says as a lie.

Or a triple or cinquentle agent

Most central banks hold huge amount of gold. Bankers know what holds value in the real world

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http://uk.finance.yahoo.com/news/china-gold-not-key-to-foreign-currency-investment-afp-e0a61f219bbc.html?x=0

China: gold not key to foreign currency investment
8:47, Wednesday 7 July 2010
Gold will not be a key investment for China's massive foreign exchange reserves, its foreign exchange regulator said Wednesday, noting poor returns from the precious metal in the past 30 years.

Poor returns over the last 30 years? They were not poor but non-existent IA.

Translated: Please ignore us. We are not interested in buying gold. We are not inscrutable. Nothing to see here. Move along please.

If they were interested in gold, surely they would be proclaiming it to the world?! :rolleyes:

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1188.90 -6.20 -0.52%

Perhaps the Chinese are putting out a double bluff and really are selling hoping to draw in the bulls to keep the prices up as they sell?

Why a "double bluff" & not just a bluff? It wouldn't be as there former fits your argument by any chance would it?

I would be more interested in China's words when/if their actions back them up.

Edited by clloyd

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Why is China investing in gold? If they have cash to spare they should be cleaning up the environmental catastrophe that their boom has resulted in.

Disclosure: I've been to China. The pollution is bad.

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extract from a week ago from minesite:

summary: China is directly buying concentrate from an Alaskan mine and processing it itself, thereby increasing reserves covertly:

"If indeed it is China's plan to increase its gold holdings, but while maintaining an orderly market in the yellow metal, it is a smart move. The main reason, almost certainly, that China did not buy the IMF gold on offer - or even a large hunk of it - would be that to do so would have sent a very overt signal to the market and that the gold price would have skyrocketed as a result. Such a movement in the price might have been seen on global markets as a vote of no confidence in the dollar - and with China's huge dollar-related foreign exchange holdings this would not suit its long term economic policy either.

To buy newly-mined gold production at source is thus a clever ploy. It is not interfering with the gold market directly by being seen to buy, but picking up gold which is actually never reaching the market. It can then move the gold into some interim holding capacity which does not have it showing up in its official reserves until, and unless, it wishes to make this statement to the markets. The fact that, as a result, less gold is actually reaching the market has a substantially smaller impact on it than the overt purchasing of bullion itself."

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