Monday, 20 June 2011
Posted by
Admin Hijrah Dinar
This list shows how countries stack up in terms of gold reserves.
As you can see, only 1.6% of China's foreign reserve holdings are in gold. They still hold over a trillion is in US debt. But they're actively working on diversifying that "overweight" asset allocation, as over any extended period its value has dropped.
Back in April, I wrote about how some analysts say China may spend up to $1 trillion of their foreign reserves:
China has been moving away from the dollar, and into alternative stores of wealth for years now.
But $1 trillion into gold? If it happens, such a large move would further threaten the dollar's status as reserve currency. It would also provide further buying pressure in gold for years to come (as the dollar crumples into a pitiful heap on the floor).
As you can see, only 1.6% of China's foreign reserve holdings are in gold. They still hold over a trillion is in US debt. But they're actively working on diversifying that "overweight" asset allocation, as over any extended period its value has dropped.
Back in April, I wrote about how some analysts say China may spend up to $1 trillion of their foreign reserves:
China has been moving away from the dollar, and into alternative stores of wealth for years now.
But $1 trillion into gold? If it happens, such a large move would further threaten the dollar's status as reserve currency. It would also provide further buying pressure in gold for years to come (as the dollar crumples into a pitiful heap on the floor).
Category:
Gold Saving / Investment
Subscribe to:
Post Comments (Atom)
0 comments:
Post a Comment