China, which has just 1.6 percent of its reserves in gold, may invest more than $1 trillion in bullion, Pento said. âChina wants to be an international player, and they need to own more gold than they currently have.â As developing countries accelerate purchases, gold may reach $2,000 an ounce this year, compared with a record of $1,569.80 today in New York, said Robert McEwen, the chief executive officer of producer U.S. Gold Corp. Euro Pacific Capitalâs Michael Pento, who correctly predicted goldâs highs for the past two years, forecasts a 2011 high of $1,600. http://www.bloomberg.com/news/2011-...nal-bullion-extending-record-price-rally.html
China to cut U.S. Reserves from 3.4 Trillion to 1.3 Trillion BEIJING, April 23 (Xinhua) -- China should reduce its excessive foreign exchange reserves and further diversify its holdings, Tang Shuangning, chairman of China Everbright Group, said on Saturday. The amount of foreign exchange reserves should be restricted to between 800 billion to 1.3 trillion U.S. dollars, Tang told a forum in Beijing, saying that the current reserve amount is too high. http://news.xinhuanet.com/english2010/china/2011-04/23/c_13842843.htm
Poster 1: I believe the world gold has more than 1 million tonnes. My ex company is a legal firm. I saw contracts for gold deals before. Last year my boss (a lawyer) drafted contracts for total of 480 000 metric tonnes gold. My boss represented a seller, and the golds sold to 12 buyers around the world. So, the data from World Gold Council is totally wrong. The world has much more gold than 160 000 metric tonnes. By common sense, we know the fact (world only has 160 000 MT gold) is wrong. if by size, 160 000 mt gold is only a cube with dimension 20 m x 20 m x 20 m. Poster 2: Oh, and his lawyer writing personally contracts on 480,000 tons of gold last year......... at a rate of $1,100 per ounce, that is $6,975,200,0010,000... that's right, almost 17 trillion dollars Wow, one, humble ol lawyer, handling 20% more than the entire USA GDP last year, and no ones even heard of him, or the insane amount of effect that would have on world economy, but no one noticed?.....why do people even think that our IQ is so low to just accept things they write like this... what, is the author like 12? As per official reports the total of all the mined gold in the world is 160,000 Tons to 200,000 Tons.
$1 Trillion = 20,500 Tonnes gold. USA has estimated 200,000 Tonnes to 300,000 Tonnes gold. When China buys 20,500 Tons gold then USA will sell 100,000 Tons gold and gold price will crash below $1000 per ounce.
If China does sell their USD reserves, the yuan will have to rise by at least 50%, which is not in their interest. They may want certain things to exist, but there are consequences to every desire and decision.
That would only have a reasonable impact on the gold supply in the world. On the other hand, if they wanted to buy a tiny fraction of that dollar amount in silver, they would wipe out all silver in existence. Check this article (written some time ago, obviously based on the prices): http://www.silverinscripture.com/moreRAREthanGold.html "At prices of $9.7/ounce silver and $558/ounce gold, what we find is that the dollar amount of gold in existence is over $2.5 trillion while the total dollar amount of silver is only about $6.5 billion. " So, changing to current values, it would read more like: At prices of $45/ounce silver and $1550/ounce gold, what we find is that the dollar amount of gold in existence is over $6.9 trillion while the total dollar amount of silver is only about $30 billion. So, if China wanted to just buy $50 billion in silver, they can't do it at current prices! I see silver pushing towards $200 and then much further... JJacksET4
Did it every occur to you that some of those contracts were the same gold being bought and sold over and over? Or that the contracts traded were just paper and no physical was backed by those contracts? Look at Citigroup stock. It trades an average of 422 million shares per day, over 252 trading days in a year, thats 100+ billion shares. Does that mean there are 100 billion shares outstanding? No. If I short a contract of gold and you buy it on the other side, do I have 100 oz of gold or just a small deposit that I will buy back later? You can see where imaginary gold gets made up and traded now?
Sorry Bearice but USA does not have any gold. You actually believe there is gold in Fort Knox. Sorry to break the news to you but gold taken from American people and melted into bars to be stored in Fort Knox has been moved in the 1970s to London England. That's right, gold has been taken by Bank of England Rothschild holders. They see it as their own gold anyway, they don't see it as theft. I am sorry to bring this sad news to you bearice. Try to have a pleasant day and not think about it too much