China’s Gold Diversification

According to a China Business News survey covering 70 Chinese economists, 71.4 percent shares the opinion of more diversification into gold, away from bond paper. This means that two thirds are reportedly bearish on the prospect of China increasing its holdings of US government bonds. The remaining 28.6 percent of those polled believe China should keep current diversification. 32.8 percent thinks that China should unload the bonds, 22.8 percent of whom think of a slight sell-off, while 10 percent believes China should drop US bonds simply from bad habit.

As for gold investments alone, the polled economists have a slightly different mindset; 21.4 percent said that the gold reserve level was fine. But 75.7 percent of the economists asked believe that China should increase its holding of gold with 48.6 percent opting for a slight increase while 27.1 percent think China should stack up at the current $1000 price level.