China Admits It’s Been Secretly Stockpiling Gold

Of the countries that disclose their gold holdings, China is now ranked fifth in the world, ahead of the Swiss, the former beacon of a solid currency.

Since 2003, China has increased it’s gold holdings by 75%.  Over the same time period, the Chinese have been gradually moving their foreign reserves out of US assets.

I can’t think of any reason why these trends would reverse themselves anytime soon.  And apparently, neither can traders, as they bid gold back up above $900 on the news.

There’s probably a decent chance any gold the IMF sells will never hit the market, as the Chinese may be waiting to gobble it up.