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China Increases Buying of Gold, Pushing Gold to Records

October 23, 2009 at 22:18 by Vladimir Vyun

China will increase buying of gold, as the economy rebounds, to expand its gold holdings. China’s percentage of holdings in gold is underweight. China most likely will be accumulating gold in its reserves to increase the percentage. It would have a significant impact on the demand.

1,054 tons of China’s gold represents less than two percent of its reserves. China, the biggest gold producer in the world, has increased its reserves by 76 percent since 2003.

Record government debt and low interest rates cause investors to be concerned about the prospect of rising inflation and currency debasement, pushing gold to records. Immediate delivery for gold traded as much as $1,058.27 per ounce at 16:02 in Singapore.

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