GIG-OS ENGLISH: Global InterGold shares about China's gold reserves importance

Global InterGold shares about China's gold reserves importance

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There are multiple viewpoints regarding China's gold: some experts believe the country has been increasing its gold reserves for years, others claim they are being sold, but everyone agrees that China needs to reveal its data to dispel the rumours to perform a forecast for the future of gold close to reality.

How is China's hidden data influencing gold market?

China's gold reserves have been targets of speculation among economists and participants of the market who want to learn the nuts and bolts of China's purchase and production history. The reason is 1054 tonnes - the only figure available in the last 6 years by the International Monetary Fund as China's official gold reserves.

When Shangai International Gold Exchange was launched on September 2014, the governor of the Peoples' Bank of China declared that the gold market is an integral part of China's financial market and the bank will continue to support its growth and development.

Such importance of the gold market and the opening of the market at international level lead every economist aware of China's top position as physical consumer of gold, plus its production, to think that the data of China's gold reserves do not hold water.

Why is so important to disclose this information? Even though experts declared the high influence on gold prices comes from the West, the data revelation of gold reserves, could turn around the market and turn China's gold market into the indisputable most influential factor.

According to Bloomberg agency, one of the main goals of China is to introduce the yuan in the IMF's currency basket – which could be the reason why the nation is a willing gold buyer – but that would mean the updating of data. This update could help prove speculations ill-founded, or not, and every country could participate in the gold market with all the cards on the table.

Another reason for this – yet supposed - active purchase is the aim to compete with U.S. for the control of global trade. Obviously the Asian Giant can surprise soon the market, and change the future of gold prices.

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