A message to the USA from China

China is usually very secretive about its gold purchases/holdings so this was a bit of a surprise:

I think that they were sending a message to the USA

By my math, approximately $1B. Is that enough to worry about?


“China’s gold reserves rose to 65.12 million ounces at the end of January, up 480,000 ounces from the end of December 2022, data from the State Administration of Foreign Exchange showed Tuesday.”

That is an increase of only 0.7% in a year – not sure that’s a very strong message.



That’s not a message. That is a rounding error.


Paper this morning has photo of ICBM missile silos under construction in China.

You wonder what other message they are sending.

Shaken not stirred

Which country has the most gold reserve?

Image result for US gold reserves

of the United States

This statistic presents the gold reserves of largest gold holding countries worldwide as of the third quarter of 2022. At that time, the central bank of the United States held approximately 8,133.5 metric tons of gold. The United States has the largest gold reserve, with more than 8,000 metric tons of gold.Jan 5, 2023

oh wait but weren’t the ejits who write blogs saying otherwise?

Leap your graph is too small to read and will not expand or link to something else.

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I think the German’s are beginning to worry.

What does it matter how much gold they (or any country) has?
No one is on a gold standard nor is anyone going to one anytime soon.

Incidentally, what did they use as payment?
Maybe we should sell them some of ours.


I’m not sure either. But I think the fear is that stockpiling gold is considered as a hedge against fiat currencies, in particular the USD. So, a rise in gold is seen as sign that people (read that countries) are pessimistic about the green back. How true that is I have no idea but I tend to NOT worry about it myself.


I think it is just competition for the reserve status. China’s RMB is a minor reserve currency over the last ten years or so.

Gold is like ballast in a ship. It gives some value to the currency. But there is no gold window to make a currency claim as we know.

Supposedly selling Treasuries is how Russia fueled its increase in gold holdings. Which could also be seen as a vote against US debt.

Not really a vote. Just a short term depreciation. It wont be lasting.

About US $860-million (32,150.7466 troy ounces per metric tonne). Don’t use retail price of gold to consumers, instead use bulk price per ounce per 25kg (or larger) bars. Think I used $1776/troy ounce.

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So someone sold gold to Russia for US Treasuries. Not sure why that is a vote against US debt.

Well the reason is obvious. Because the selling of… well the fact that Russia wanted… because its gold darn it. Because its gold! :smiley:

Ok you got me. Now I’m not sure either.



The Captain


Does it have something to do with the value of the dollar ie the dollar crashes and gold goes up in value? I think that is one of the issues…doc

Probably Russia is having a harder time spending currency because of the bank sanctions. China is planning for a war with the U.S., so of course they don’t want to hold U.S. debt.


Well then they have a long way to go. They hold almost $1T in US debt, down about $20B over the year. At that rate, we can expect a war in just 50 years. :wink:

Or possibly they’re repatriating money because of their slowing economy, the weak yuan, and a need for investment to goose production and construction in the short term.