by Kenneth Schortgen, The Daily Economist:
One of the more difficult things financial analysts have had to do is to try to piece together just how much gold China has accumulated over the past 10-20 years. For some analysts like Dr. Jim Willie, the estimates range between 25,000 and 40,000 due to market insiders who provided him information that China had been buying at least 1,000 tons of gold per month for more than a year and a half.
Additionally, China has become the world’s largest gold producer and per state policy, does not export any of its metals to foreign markets. Meaning that they produce between 276 tons (2006) and 450 tons (2014) per year, every year.
China, it seems, wants to make the rules in the international monetary system, which is why it has been acquiring vast amounts of gold both through private and official channels.
Because of the obscure nature of the Chinese gold market and the reluctance of Chinese officials to show their hand, nobody has been able to accurately calculate how much gold the Chinese have amassed since about 2000, when they began amassing it.
Enter Koos Jansen, an analyst with Singapore bullion dealer Bullion Star. He has studied the Chinese gold market for years and recently came up with an estimate of total Chinese gold holdings: 19,500 metric tons, or 21,495 U.S. tons, at the end of January 2017.
“They have promoted gold ownership as a store of value since at least 2002, but more so when they introduced the ‘storing gold with the people’ concept in 2004,” says Jansen, a campaign encouraging private citizens to buy gold. – Epoch Times
And the purpose behind China’s ongoing 15 year plan for gold accumulation…
According to Jansen’s contacts at Chinese banks, official holdings are closer to 4,000 tons rather than the published figure of 1839 tons. What does China need that gold for?
“They buy official gold to internationalize the Renminbi. If there are enough reserves behind it, they can make it a credible currency.” He who has the gold makes the rules.
That’s also why China doesn’t allow even one ounce of gold and silver to leave its shores once it enters. “The West has been selling gold into a black hole,” says Jansen.