| China is oversupplied with gold, according to one analysis — only the Chinese don’t seem to be in on this news. Otherwise why would they be in the process of setting up what will be the world’s largest fund in terms of physical gold held, eventually to grow to $US16 billion ($20.9bn) worth of the yellow metal? Or indeed why would they have entered big deals over the past week to get a foothold in Papua New Guinea and Siberian gold production?
And central banks are no longer so laid back about gold reserves. Who can forget the decision by the central banks of Britain, Australia, Switzerland (the Swiss off-loaded 1550 tonnes), The Netherlands, Portugal, Spain and France to sell from the late 1990s, and at the bottom of the market into the bargain?.......................................Full Article: Source
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