So what's the truth here? From China daily, yesterday: China unlikely to buy gold from IMF http://www.chinadaily.com.cn/bizchina/2010-02/24/content_9495476.htm And today from Pravda today (I know...) China To Purchase Half of IMF's Gold http://english.pravda.ru/business/finance/25-02-2010/112369-china_gold-0 But wait!!! India wants in on it too? India-IMF deal to stabilise gold http://www.business24-7.ae/Articles...2252010_af484731ee4c4e9b82d666ff515ff915.aspx A lot of crazy stories out there... I think the central banks in the emerging markets have been playing it a little too cool lately about their appetite for gold. we'll see... I'm waiting to hear from Bloomberg on this. Too many conflicting stories here.
china may have changed its opinion on gold with the concern over the euro. the dollar was the concern before this and the euro was a way out. now the euro is not safe either gold is the most viable option. the pigs problem may have changed chinese opinion. either way if they are not in the market at the moment it is likely future interest will arise. also unlike russia and the uae they do not have oil to fall back on so they need a reserve of wealth if they lose demand, which is happening. the only real store precious metals. i think this is why russia is not in the market.
I agree, but China, unlike India, can mine the stuff, so I would think India would be more interested. China did make a large, recent purchase in GLD. Either way, story looks fishy - Pravda isn't exactly the greatest source. May be an interesting day, especially as you mentioned, with the Euro problem still flaring up.