China ‘has more gold than official figures show’

In other words, they could be getting ready to pull the plug.

China could be holding even more gold than previously realised, according to Alasdair Macleod, a researcher at online precious metals trader,GoldMoney.

Official figures from China Gold Association (CGA) show that the Asian superpower consumed 1,176 tonnes of gold in 2013, 41pc higher than in 2012.

However, about 500 tonnes of gold from Chinese mines and scrap is unaccounted for by the CGA.

Mr Macleod believes the country holds more gold that the stated figures suggest, and in fact consumed 4,843 tonnes in 2013 alone. He raised his estimate after researching Chinese Gold Reports, where he said he found details of the amount of gold vaulted.

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Jim Rickards: China is Importing Gold Secretely Using Military Channels (EXCLUSIVE INTERVIEW!)

The Inteligencia Financiera Global blog (Global Financial Intelligence Blog) is honored to present an exclusive interview with economy world expert Jim Rickards.  Jim is the author of the bestseller “Currency Wars: The Making of the Next Global Crisis” and the forthcoming, “The Death of Money: The Coming Collapse of the International Monetary System”.

Jim, as you know, China is now the world’s largest consumer of gold. While the WGC states that its “record” demand in 2013 was only 1,065.8 tonnes, the China Gold Association estimates “gold consumption” was 1,176 tonnes. On the other hand, several pundits like Koos Jansen say that the real China gold demand was much more than 2,000 tonnes last year. Who should we believe?

– There are many estimates of official and non-official accumulation of gold in China. The truth is that no one knows the exact number because China is non-transparent about the total amount of gold coming into the country and its own mining output, and it is not-transparent about how much of that gold goes for personal acquisition and now much to government reserves. So, all analysts, myself included, are working with imperfect or incomplete information. We do know that some gold comes into China using military channels and is not reported to any authority. As a result, even the best estimates may be too low. The best guide is to assume China has some target in mind, probably 5,000 tonnes or higher, and will continue to accumulate through diverse channels until that target is reached. My estimate is that China will announce it has over 5,000 tonnes of gold in early 2015. It probably has at least 3,000 tonnes today.

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Gold prices rise amid China’s missing bullion mystery

Commerzbank forecast higher bullion prices even after 500-tonnes of gold ‘vanishes’ in China

Gold hit a three-month high on Tuesday morning, defying most expert views that 2014 would see further falls in the precious metal a day after a report revealed 500-tonnes of bullion is missing somewhere in China.
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