Tuesday, December 16, 2008
China Likely to Increase Gold Reserves
China increasingly sees gold as an attractive alternative to the dollar--a tangible asset that will not lose its value over time.
China fears that the U.S. bailout package and stimulus spending will be funded by printing new money or issuing huge amounts of new debt, either of which will put severe pressure on the value of the dollar.
The United States holds 8,133.5 tonnes of gold reserves valued at US$188.23 billion. China holds gold reserves of just 600 tonnes, worth only US$13.89 billion.
Beijing's reserves could easily go up to 3,000 to 4,000 tonnes, analysts say.
Wednesday, 17 December 2008
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