"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat

Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput


Thursday, February 10, 2011

China may increase gold reserves beyond 'Fort Knox' level

This article nicely dovetails with our recent interview with Eric King where it was mentioned that there exists the real potential for China to increase it gold reserves from near 2% to closer to 10% of its total overall reserves.

David Hale actually goes further than the scenario we were outlining where we were talking about them perhaps acquiring a bit more than 5,000 tons.

Apparently that is a bit too conservative.

Either way, it continues to reinforce the idea that the Asians are on the prowl for the yellow metal.

CAPE TOWN (miningweekly.com) – China’s central bank is being advised to increase its gold holdings nearly tenfold to a level greater than the world’s biggest bullion depository, the US’s "Fort Knox".
Global economist David Hale, who addressed the packed Mining Indaba in Cape Town attended by a record 5 700 people, says that China’s gold reserves are currently at 1 050 t – only $30-billion to $40-billion compared with the country’s total assets of $2,8-trillion



  1. Dan,
    Jim's comment on this story was:
    "This is easy. China only needs one ounce to accomplish this."

    He thinks all the US gold is gone? To where?
    Jim Rickards certainly doesn't think the gold is gone - he refers to the US a "gold superpower":

  2. The US claims to be holding over 8000 tons of gold but no one really knows what we have since we cannot get an audit from a disinterested third party.

    One of the things about this story is that it continues to serve as a reminder of how relatively low a level of gold in their reserves the Chinese actually have. I think it is now a given that they are going to substantially increase those holdings and that will make them active in the gold market should price descend lower.


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