Submitted by Tyler Durden: While the highly "sophisticated" traders that
make up the gold market continue to buy or sell the precious metal based
on whether the Fed will or will not do the NEW QE tomorrow (or just
because, like Bruno Iskil, they have a massive balance sheet, and can
create margin position out of thin air with impunity), China continues
to do one thing. Buy. Because while earlier today we
were wondering (rhetorically, of course) what China is doing with all
that excess trade surplus if it is not recycling it back into Treasurys,
now we once again find out that instead of purchasing US paper, Beijing
continues to buy non-US gold, in the form of 68 tons in imports from
Hong Kong in the month of June. The year to date total (6 months)? 383 tons. In
other words, in half a year China, whose official total tally is still a
massively underrepresented 1054 tons, has imported more gold than the
official gold reserves of Portugal, Venezuela, Saudi Arabia, the UK, and
so on, and whose YTD imports alone make it the 14th largest holder of
gold in the world. Realistically, by now China, which hasn't provided an
honest gold reserve holdings update to the IMF in years, most certainly
has more gold than the IMF, and its 2814 tons, itself.
Of course, the moment the PBOC does announce its official updated gold
stash, a gold price in the mid-$1000 range will be a long gone memory.
Here is the latest breakdown of gold reserves by Top 20 countries via the WGC:
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