What is the current estimate of value Chinese govt. reserves say in USD?
What is 10% of that?
How many tons of gold does that equate to?
How many tons do you think they hold now?
Sure gold could flow back from China you cannot rule out the possibility, however after decades of not being able to own gold privately there seems an insatiable appetite to own it now & I suspect gold in Chinese hands will be far stickier than in Western hands.
Perhaps China raises its ratio of gold holdings to 10%, perhaps they actually decide over time to go to 50%. Who knows what they will do, but at the moment they are buying at a growing rate.
It is also not just the Chinese government that is buying gold but its people, openly being encouraged by their government to do so.
Why do you think this is?
I can't wait for the answers... Tiger for punishment I suppose.
