Beijing doubles gold reserves, but warns: "It is a bubble"
Beijing (AsiaNews / Agencies) - The Chinese government fears that the revaluation of gold to its historic high "is the result of driven speculation, but will lead to the explosion of the bubble." So said the Deputy Governor Hu Xiaolian Bank of China yesterday, who stressed: "China will not continue to buy gold in an indiscriminate manner”. The appeal of the official may have a double significance, beyond the question of "ethics".
The government in Beijing, in fact, has doubled its gold reserves in recent months: a sudden collapse in the value of the precious metal could create a considerable deficit in domestic accounts. According to Hu, in addition, "we must always bear in mind the long-term effects, when choosing what to use as reserves. In some areas it is easier for bubbles to be created”.
A month ago, China announced that it has doubled its gold reserves that now amount to 1054 tons: it is the fifth largest deposit in the world. Same choice for the Indian government, which raided the reserves offered for sale by the International Monetary Fund. But this has created a gold rush that now threatens to explode. After hearing news of the purchases of Beijing and Delhi, in fact, a good number of foreign investors decided to buy the metal at the expense of the currency.
All this has led to gold now standing at U.S. $ 1,217 per ounce, its highest value ever. However, officials of the Chinese government know that this race must stop: China has economic reserves for 2300 billion dollars. A figure so high that the Central Bank of Beijing can not possibly transform in to gold, at the risk of seeing the price take off due to a financial arrangement.
In any case, according to experts of the European banking giant BNP Paribas, the current positive trend of the ore could continue “for another month, a kind of investment against financial calamity". What is sure, the stock market crash driven by the failure of Dubai has also contained gold, panicking many countries - like Greece, Ukraine, Bulgaria and Vietnam - that by next year must pay off debts that they had thought to pay with gold currency.
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