Scanning through newsbriefs this morning we have extrapolated the following:-
October and November saw record imports of gold stream into China.
We're still waiting on the numbers for December, but in these two months, Chinese gold buyers bought up almost as much gold as the world's central banks are expected to buy in the next six months.
"One analyst is projecting China's total gold imports for 2011 at 490 metric tons -- more than all the gold the world's central banks added for the entire year last year."
We are told the fact that China is continuing to buy gold shouldn't be a surprise to anyone who follows financial headlines, but the figures she refers to are staggering.
When we need more money, we just print more money. The amount of dollars and obligations in the system is so great in the US that the Federal Reserve has stopped reporting on the actual figures.
As a percentage of its overall foreign reserves, China's gold stash is miniscule.
Therefore it isn't surprising that a Chinese central bank official called on the Chinese government to continue snapping up all the gold it can.
China might buy all of the gold it can afford, but it will only drive prices higher as it does it.
All that gold in European and American vaults isn't for sale, and a lot of other people are clamoring for whatever miners can pull out of the ground.
In the end, China will have a tough time reducing its risky reserve holdings (foreign treasuries) without paying through the nose. After forking out all that money in 2011 Beijing only managed to bump up its gold reserves from 1.7% to 1.8% of its total reserves.
Investment and jewelry demand has also made China the largest importer of gold in the world. And its only going to escalate further when China deregulates laws preventing its individual citizens from stockpiling gold.
Little wonder that MCO management have been fielded consistent inquiry from China on what's hapening down at WP.
Major source for compilation of the above was:- http://www.smartinvestingdaily.com/articles/smart-investing-013012.html?sub=SID&o=607186&s=611407&u=29150851&l=375741&r=Milo
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P.S. Quinty is recovering, and unfortunately becoming more excited again, principally by articles like the one above.
This morning he was in discussion with his Kiama based mate Boris and unfortunately they are muttering about making a trip down to Woods Point soon. (Boris is also unwell with an extremely high white cell blood count) and we know WP is remote in the occassion of emergency health care.
If both feel up to it they are threatening dropping into MCO in about a fortnight. But not if Boris's wife Linda (who is not an MCO investor) and I can waylay them!
MCO Price at posting:
24.0¢ Sentiment: Hold Disclosure: Held
