In Fiat Money We Do Not Trust "Chinese Edition"

Perfect follow up on In Fiat Money We Do Not Trust ... I think it´s safe to assume that China will be a net buyer of GOLD for some time to come......Especially when you consider the tiny FX to GOLD Reserves Ratio from the Central Bank......

Paßt hervorragend zu In Fiat Money We Do Not Trust .... Denke man kann ohne Übertreibung sagen das China bzw die Chinesen auf Sicht der nächsten Jahre sicher zu den Nettokäufern von GOLD gehören werden.....Gilt besonders wenn man sich das aktuelle Verhältnis der Fremdwährungen zu GOLD der Chinesischen Notenbank ansieht.....



H/T The Mess That Greenspan Made

I just wanted to add that it was illegal to buy GOLD as an investment vehicle in China for decades and with negative real interest rates & very few alternatives this kind of "GOLD FEVER" is probably less surprising...Since Greece has made headlines here in Germany the same store would have been almost as packed in Hamburg or Munich ;-)

Looks like Sorros knows this chart and wants to frontrun the "ultimate bubble".... Otherwise the 100% increase of his GOLD investment would make little sense.......

Ergänzend sollte man wissen das es in China bis vor kurzem verboten gewesen ist GOLD für Investmentzwecke zu erwerben und das es dank der seit Jahren notorisch negativen realen Guthabenzinsen & fehlender Alternativen nicht weiter verwunderlich ist das solche Läden so prosperieren....Seit Griechenland in Deutschland die Schlagzeilen beherrscht bin ich mir sicher das ein identischer Laden in Hamburg oder München ähnlich erfolgreich wäre.. ;-)

Sieht ganz so aus als wenn Sorros diesen Chart in Verbindung mit dem "ultimativen Bubble" vor Augen hat... Ansonsten würde es wenig Sinn machen das er sein GOLD Investment inzwischen verdoppelt hat.......

Gold Report China H/T ZH

The following chart won´t hurt their appetite for GOLD either......

Der nachfolgende Chart dürfte den Appetit in Sachen GOLD nicht gerade mindern.....

RBS on central banks’ underwater EUR positions FT Alphaville

Because over half the reserve accumulation in this period took place in the last 3 years, Chinese acquisition of reserves has been at relatively high EUR/USD levels. There is no data in the public domain on how much of China’s purchases were in EUR, but presumably diversification to lower the share of USD holdings may have pushed EUR purchases to close to half of all acquired reserves, and a majority of these purchases are well ‘out the money’.

The chart above shows that as much as 77% of Chinese reserves were accumulated at levels above EUR/USD 1.25. This does not discriminate between EUR purchases and USD purchases.