SilverDoctors: A prominent PBOC Advisor has stated that US Treasuries are not safe
in the medium to long term, and has recommended China increase it’s gold
reserves as well as add silver to it’s official reserves.
If confirmed,
this is a potential game changer for silver that is so monumental it
could literally blast silver from the upper $20′s through it’s all-time
nominal high near $50 and closer to 3 figure range OVERNIGHT.
Where
China to reduce it’s US Treasury holdings by $200 billion and plow the
proceeds into physical gold and silver bullion as Xia recommends, you
can kiss the cartel’s silver manipulation goodbye!
Even
if 90% of the funds ($180 billion) were allocated to gold and a mere 10%
($20 billion) to silver, at today’s market prices that equals nearly 2
years of global silver mine supply of around 750 million ounces.
It
doesn’t take an economics degree from Princeton to realize that should
China attempt to add silver to it’s currency reserves, the price of
physical silver will become logarithmically disorderly to the upside
OVERNIGHT!
A
former central banker claimed that US Treasuries were not safe in the
medium to long term. In addition, China will launch a new investment
fund that will invest parts of the more than USD 3,000 in currency
reserves in energy and precious metals. PBoC advisor Xia recommends holding only USD 1,000bn in currency reserves, with the rest to be earmarked for strategic investments. He goes on to suggest a gradual increase in gold reserves and recommends pursuing a “buy the dip” strategy over an extended period of time. He also advises PBoC to add silver to the official reserves.
At
the same time, an official of the Chinese Chamber of Commerce said
China should step up its gold reserves to as much as 8,000 tonnes. Ji
Xianonan, head of the Chinese State Council´s State-Owned Enterprise
Supervisory Board, has recently suggested that China ramp up its gold
reserves within the next three to five years to 6,000 tonnes. Within ten
year´s time, China would want to own 10,000 tonnes of gold. This means
that China would have to buy almost 40% of annual production until
2020. The significance of such statements can hardly be
overestimated. Experience shows that they tend to be accorded with the
government and party leaders.
According to the statistics of the World Gold Council, the Chinese central bank did not make any purchases in 2010 or 2011. Official reserves
were last reported in June 2009 at 1,054 tonnes. The gold imports from
Hong Kong amounted to more than 100 tonnes in April alone; in the year
to date, 240 tonnes of gold have been imported. There is a clear upward
trend in place: between May 2010 and April 2011 China imported 66
tonnes, and a year later imports were at 489 tonnes – an increase of
640%99. In total, imports in 2011 amounted to 427 tonnes (as compared to
118 tonnes in 2010). We expect not only Chinese private investors but
also the PBoC to continue stepping up their accumulation of gold
reserves massively. We believe that China holds definitely a far higher
volume of gold reserves than the officially confirmed 1,054 tonnes.
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