The Chinese central bank, The People’s Bank of China, has announced a 9.95 tonne increase in the country’s gold reserves and its subsidiary, The Shanghai Gold Exchange (SGE) has come up with its gold withdrawal figures for February (which we equate to China’s real gold demand). My comments on both these have been published on the Sharpspixley.com website and links to the two, admittedly opinionated, articles are shown below:
CHINA ADDS 10 TONNES TO GOLD RESERVES, BUT IS THAT ALL?
The Chinese central bank has reported adding a fraction under 10 tonnes of gold to its forex reserves in February, but is the new total any more accurate than in the past?
CHINA’S GOLD DEMAND LOOKS TO BE SLOWING THIS YEAR SO FAR
The Shanghai Gold Exchange has now released gold withdrawal figures for the first two months of 2019 and if we equate SGE withdrawal figures to Chinese gold demand, as we do, these suggest the nation’s demand may be slowing this year/
China accumulates gold in the United States and Europe to reduce its trade surplus. This is a neutral investment that allows you to avoid the accumulation of volatile currencies in your reserves.