Do the Chinese really believe the U.S. is selling down its gold reserves

08 September 2010 | 06:48 Code : 20167 Geoscience events
We always have to remember that the Chinese are inscrutable. The Chinese government is very...

We always have to remember that the Chinese are inscrutable.   The Chinese government is very careful not to say any more than is necessary on anything.   It’s also very useful to have people, supposedly close to government makes statements that may appear to be government policy.Many of the statements come from people helping to lay a smokescreen for the true picture, or to get a reaction, like tossing a stone into a bush to see what flies out.Before we give the quote we have to tell you this quote is not from a top official but from a central bank researcher.   Because of his closeness to the People’s Bank of China, it may be assumed he is telling us facts that are common knowledge at the bank.   On the other hand the quote is explosive, not backed up by fact, runs counter to common sense and against the information we have.   It’s natural to then say, "Maybe he knows something we don’t know".   So whether you accept this as fact, or not, is your decisionHere is the quote, "Sales by overseas central banks could see a sharp fall in gold prices". [The Financial News reported Wednesday], citing Zou Pingzuo, a central bank researcher.    He continued, "Investors should be careful about investing in gold.    Gold prices could fall sharply because of intensive gold sales by the United States and other overseas central banks."

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