Last week, when the Chinese central bank announced it was holding 1,658 tonnes of gold, the entire financial media came up with huge headlines showing stupefaction about such an important increase since 2009, the last time there was an official update (1,054 tonnes). An increase of 57% in six years... should we be astonished? Actually, this number is far from being impressive: it only shows an 8% yearly increase, the same number (also official) as GDP growth. There is not much risk in betting that this number is cooked, largely under-estimated, and that the financial media will be out of superlatives when the next official announcement is closer to reality. #China #gold #GDP
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