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Executive Summary – In a move to strengthen its currency as a reserve currency China is stepping up its gold reserves. They took their Gold reserves from 600 to tones to 1054 tonnes. They are of course buying gold with their USD reserves converting their USD to gold. Obviously they are expecting the USD to tank. By converting to gold they have a good chance of stepping in with their currency to partially replace the void that the declining USD will leave.
China is not the fifth largest holder of Gold after USA (if they really do have any gold left in Fort Knox, Germany, France, and Italy. The Swiss have about as much gold as China now. The IMF has 3217 tonnes of gold. It is rumored that China wishes to increase its gold reserve to 4000 tonnes. This of course would make their currency a hard and much desired currency to be used as a reserve currency. More doom and gloom for the USD. The USA acts like nothing is wrong and they a re still the big superpower. They are still a superpower but a bankrupt one.
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