Sunday, 16 August 2015 22:29

China Announces Increase in Gold Holdings

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On Friday August 14, 2015 the Peoples Bank of China announced that it purchased 19 tons ot gold during July, bringing its total stated gold holdings to 1,677 tons as of the end of July. China purchased gold at recent lows and perhaps helped the price to rise back over $1100 in the last weeks. Many believe that the total gold holdings acknowleged by China may be significantly lower that the actual amount held by various officiial entitiies in China. Misleading and conflicting information is abundant in world gold markets making it difficult for collectors and investors to accurately determine valuations. In the last month, there has been a disconnect between electronic markets and physical markets. While the precious metals traded lower in July on world exchanges, traditionally a sign of lower demand by institiutions, there was strong demand for physical coins and bars. In some cases, there have been spot shortages and delayed delivery dates, as dealers have struggled to obtain enough physical product to meet the demand. As the U.S. Federal Reserve continues to move towards the possiblity of its first interest rate increase in 6 years, it will be interesting to see the potential effect on both spot gold and silver prices, and physical demand for coins.

Read 2403 times Last modified on Monday, 13 June 2016 22:43
Mitchell Battino

A professional numismatist with over thirty years of experience, Mitchell A. Battino is a certified appraiser and numismatic consultant who specializes in buying, selling, and appraising U.S. and world gold and silver coins. Mr. Battino is a regular contributor to numismatic publications, attends major coins shows, and travels extensivley to purchase deals and collections.

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