From Mineweb:

Is China increasing its gold reserves but without reporting it, yet again? Or is this pure market speculation?

The odds would favor the former, but the markets just won't know until the Chinese announce the fact at a point in time of their choice. Such an announcement is politically very sensitive, and if several hundred tonnes of gold have indeed quietly and surreptitiously been moved into the Asian giant's coffers, which this writer feels is more likely than not, then news of this could have a very sharp upwards price impact for the precious metal.

It will be remembered that China's official reserve figure is 1,054 tonnes - an announced increase of over 75%, supposedly achieved over a three-year period to 2009. But there's no particular reason to even believe this figure.

Chinese official gold reserves are at whatever level the government is prepared to announce. Even if its official gold holdings are indeed 1,054 tonnes, there could be...

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