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PBOC Gold Purchases: Separating Facts from Speculation

BullionStar This post is part of the Chinese Gold Market essentials series. Click here to go to an overview of all Chinese Gold Market Essentials for a comprehensive understanding the largest physical gold market globally. In this post we will analyze everything there is to learn about PBOC gold purchases. Grasping the exact size of their official gold reserves is unfortunately impossible, assuming they have more than what is publicly disclosed (roughly 1,840 tonnes as of 2017), but there are many clues signalling they’ve covertly bought hundreds if not thousands of tonnes of gold since 2009. The purpose of this post is to get an overview […]

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The PBOC Was Buying Gold in London In The Nineties

BullionStar I couldn’t resist translating this must read from 1993 in Dutch newspaper NRC Handelsblad (h/t @frankknopers) about the gold sales by the Dutch central Bank (DNB). Presumably, “a part” of the 400 tonnes sold at the time through the Bank For International Settlements went to the Chinese central bank. Although we don’t know for sure what the Chinese central bank did with the gold – at the time the People’s Bank Of China was the primary dealer in the Chinese domestic gold market and in theory could have sold the gold to Chinese jewelry fabricators – we may assume […]

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The Official Chinese Gold Trade Rules By The PBOC

BullionStar Recently it appeared the ‘confusion’ regarding Chinese Commodity Financing Deals (CCFDs) that was provoked in 2013 has still not been elucidated in the international gold community. Mainstream gold analysts believe CCFDs are the cause for the immense discrepancy (± 2,500 tonnes) between physical gold supply in China and Chinese consumer gold demand, which is the same as the difference between Shanghai Gold Exchange (SGE) withdrawals from the vaults and consumer gold demand. Regarding gold, CCFDs constitute of gold round tripping and gold leasing. In previous posts I’ve written gold round tripping does not have anything to do with the Chinese domestic gold market, and thus with the missing 2,500 tonnes, […]

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The London Float And PBOC Gold Purchases

BullionStar Did the PBOC covertly buy 1,747 tonnes of gold in London? This BullionStar blogpost is part of a chronological storyline. Please make sure you’ve read The Mechanics Of The Chinese Domestic Gold Market, PBOC Gold Purchases: Separating Facts from Speculation and The London Bullion Market And International Gold Trade, or it will be difficult to understand the finesses.  This week I listened to an interview with a Swiss refiner which promptly reminded me of an interview I conducted with Alex Stanczyk (currently Managing Director of Physical Gold Fund SP) on 9 September 2013 about what he was hearing from industry insiders on Chinese gold […]

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Analyzing PBOC Official Gold Reserves Increment

As always, please make sure you’ve read The Mechanics Of The Chinese Domestic Gold Market before continuing. Finally last Friday the People’s Bank Of China (PBOC) updated its official gold reserves, from 1,054 tonnes, a figure reported since 2009, to 1,658 tonnes. Most gold analysts expected a number substantially higher than what was just disclosed. In this post we’ll analyze the 1,658 tonnes figure. Before diving into the analysis, I like to share that I think it’s possible the PBOC hasn’t been completely honest by stating their gold reserves have grown by only 604 tonnes since 2009. I think in reality they […]

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