Since the Crash of ’08 exposed the global financial system as simply one, big Ponzi-scheme ticking-down to implosion; one of the most public and emphatic economic policies of China’s government has been the rapid and relentless accumulation of more gold reserves to “back” its own monetary system.
This economic priority has become an even greater imperative as China steadily replaces the U.S. dollar with the renminbi as the world’s new “reserve currency.” Stage I of that process has been $trillions in bilateral trade agreements and currency-swaps. Stage II was the establishment of a “reniminbi trading bloc” among seven of ten of Asia’s most-prosperous economies, where the renminbi is now the reserve currency for these nations.
What is unclear is whether “Stage III” involves any overt action by China to spread the renminbi’s official, reserve currency status; or whether it simply involves passively waiting for the West to complete its self-destruction of the dollar-based system. What is clear is that a central part of China’s mission to have the renminbi assume the global mantle of “reserve currency” is to have massive gold reserves backing that currency.
…Even if we assume that some of that remaining 3,000 tonnes of gold-production leaked into its own domestic market (despite the best efforts of China’s government); there is a vast amount of mined gold in China which has not been accounted for, and we must strongly suspect that most, or all, of that gold is securely stored in government vaults.
In other words, instead of having only 1,054 tonnes of gold reserves it’s quite possible that China could have as much as four times that amount: 4,000 tonnes. This would make the previously announced goals of China’s national “task force” still attainable.