Realistbear Posted July 7, 2010 Report Share Posted July 7, 2010 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. Quote Link to post Share on other sites
200p Posted July 7, 2010 Report Share Posted July 7, 2010 It took 30 years for them to work out that gold does not pay a dividend????!!!! Doh Quote Link to post Share on other sites
nohpc Posted July 7, 2010 Report Share Posted July 7, 2010 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. Quote Link to post Share on other sites
OnlyMe Posted July 7, 2010 Report Share Posted July 7, 2010 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. Quote Link to post Share on other sites
Realistbear Posted July 7, 2010 Author Report Share Posted July 7, 2010 1191.20 -3.90 -0.33% Hardly any market reaction to the Chinese statement. Gold bulls did not see it as a buying opportunity that is all. Quote Link to post Share on other sites
200p Posted July 7, 2010 Report Share Posted July 7, 2010 (edited) Give investors a chance, some have to pop their order into the post box, and wait for the postal order to clear! Edited July 7, 2010 by Money Spinner Quote Link to post Share on other sites
mattyboy1973 Posted July 7, 2010 Report Share Posted July 7, 2010 sounds like China's buying again Quote Link to post Share on other sites
Realistbear Posted July 7, 2010 Author Report Share Posted July 7, 2010 sounds like China's buying again 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? Quote Link to post Share on other sites
Belfast Boy Posted July 7, 2010 Report Share Posted July 7, 2010 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. Quote Link to post Share on other sites
OnlyMe Posted July 7, 2010 Report Share Posted July 7, 2010 ... 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. Quote Link to post Share on other sites
Realistbear Posted July 7, 2010 Author Report Share Posted July 7, 2010 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. Quote Link to post Share on other sites
Daft Boy Posted July 7, 2010 Report Share Posted July 7, 2010 (edited) Perhaps I should sell my physical gold now and take my 300% profit before gold becomes worthless. Chinkie,chinkie (why are emoticons based on chinamen ? ) Edited July 7, 2010 by Daft Boy Quote Link to post Share on other sites
Ruffneck Posted July 7, 2010 Report Share Posted July 7, 2010 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? Quote Link to post Share on other sites
Ruffneck Posted July 7, 2010 Report Share Posted July 7, 2010 ... 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 Quote Link to post Share on other sites
Frank Hovis Posted July 7, 2010 Report Share Posted July 7, 2010 sounds like China's buying again Yes, and I speak as a gold skeptic. Quote Link to post Share on other sites
Frank Hovis Posted July 7, 2010 Report Share Posted July 7, 2010 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. Quote Link to post Share on other sites
'Bart' Posted July 7, 2010 Report Share Posted July 7, 2010 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? Quote Link to post Share on other sites
Ruffneck Posted July 7, 2010 Report Share Posted July 7, 2010 Agricultural land and mineral extraction rights in Africa. Smart cookies. oh ok Africa completely risk free then.... Quote Link to post Share on other sites
Frank Hovis Posted July 7, 2010 Report Share Posted July 7, 2010 oh ok Africa completely risk free then.... Completely risk free if you are happy to use a bit of force to defend your holdings. Quote Link to post Share on other sites
Crashman Begins Posted July 7, 2010 Report Share Posted July 7, 2010 (edited) 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." 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 July 7, 2010 by Crashman Begins Quote Link to post Share on other sites
sharpe Posted July 7, 2010 Report Share Posted July 7, 2010 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 Quote Link to post Share on other sites
Tiger Woods? Posted July 7, 2010 Report Share Posted July 7, 2010 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?! Quote Link to post Share on other sites
clloyd Posted July 7, 2010 Report Share Posted July 7, 2010 (edited) 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 July 7, 2010 by clloyd Quote Link to post Share on other sites
DrGUID Posted July 7, 2010 Report Share Posted July 7, 2010 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. Quote Link to post Share on other sites
bearwithasorehead Posted July 7, 2010 Report Share Posted July 7, 2010 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." Quote Link to post Share on other sites
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