Experts suggest China should increase its gold reserves to 10,000 tonnes

Financial crisis warns China to secure foreign exchange reserves "we suggest that China's gold reserves reach 6000 tonnes in 3-5 years and can rise to 10,000 tonnes within 8-10 years," the report said.　　"At the Third China Industrial Safety Forum, held on November 28, Ji Xiaonan, chairman of the state-owned key large enterprise Board of Supervisors, said that China should focus on gold in optimizing its foreign-exchange reserves structure. The security of the financial industry has become the focus of this forum, and gold has clearly become an important topic. The role of gold in the financial crisis has been particularly noticeable as a key strategic reserve resource, experts say. After the crisis, the United States, with 8000 tonnes of gold reserves, borrowed heavily and was saddled with debt, but did not sell a gram of gold. Some countries in Europe, such as Germany, France and other countries with large gold reserves, despite the huge impact, not only to sell gold, but increase the increase in gold.　　Some countries in the Middle East are also increasing their holdings of gold. Ji Xiaonan that China has more than 2 trillion U.S. dollars in foreign exchange reserves, of which 70% are dollar assets, the current structure of foreign exchange reserves to a large extent, the security of our national wealth is subject to other countries, if the dollar continues to depreciate, it is bound to cause the large shrinkage of China's foreign exchange reserves. Normally, the dollar is devalued and gold is appreciating.　　Converting some of our foreign exchange reserves into gold reserves can hedge the loss of depreciation of our dollar assets, mitigate the risk of foreign exchange reserves and safeguard the security of national wealth, but also help to strengthen the discourse power of RMB in the process of rebuilding the international financial order. World gold prices have hit record highs in the past two months, up to $1192 per ounce.　　A year ago, the world's gold price had been down to $749 per ounce.　　Ji Xiaonan said that China's gold reserves should be matched with the status of China's economy, so it is important to optimize the structure of China's foreign exchange reserves by turning some foreign exchange reserves into gold reserves. This view echoes the famous economist Mr. Yining. He pointed out that the security of a country's foreign exchange reserves has two main aspects: one is the continuous deficit of foreign exchange payments, resulting in a substantial decline in foreign exchange reserves. The second is the constant depreciation of foreign exchange reserves, the value of foreign exchange reserves has been reduced.　　He suggested that China's foreign exchange reserves should be more diversified, including increasing the proportion of gold reserves, which would also facilitate the internationalization of the renminbi. Ji Xiaonan revealed that, since last year, some experts from Beijing and Shanghai have formed a special group to study the issue of increasing gold reserves. The group suggested that China's gold reserves could be increased to 6000 tonnes in 3-5 years with China's current economic growth, and could rise to 10,000 tonnes within 8-10 years.