China and ex-soviet states join forces in the Gold Market
Duncan Richardson, News Editor
25 Jul 2016, noon
In three decades China has developed from a poor inward rural economy to a global manufacturing powerhouse. There is no doubt the 21st century will belong to China and at the heart of their ambitions is economic development along the historic silk road.
China plans to resurrect the ancient trade route between Europe and Asia. The plan will involve massive infrastructure projects, 30 countries and over 50% of the world’s population.
Coincidentally in May 2015, the Silk Road Gold Fund was launched with the specific objective of supporting economic development along the route. Below is a direct translation from a Chinese official.
“Representatives from gold and financial institutions talked freely about bringing gold’s superiority into full play, seizing the historic and strategic opportunity of One Belt One Road [silk road], strengthening bank-enterprise cooperation and financial-industrial combination, and leading the transformation and upgrading of the gold industry under the economic background of the new normal.”
Like China, Asian central banks are hoarding massive amount of bullion. Since the 2008 economic crisis Kazakhstan has grown their gold reserves from 67 metric to 222 metric tonnes. Russia, China’s closest ally, has increased their hoard from 996 tonnes in the year 2000 to 1,460.39 tonnes. Central banks across Eurasia are buying gold as well, Belarus, Tajikistan and Kyrgyzstan are all adding to their reserves. These figures are not insignificant when you consider the UK owns a pitiful 350 tonnes.
It is clear from their actions that China and numerous other Asian countries believe that gold will play a pivotal role in the 21st century.
View original source at: www.bullionstar.com