Chickens Secondary Header
728x90 header
prettylink

Chinese gold come back again one

Article by Skymaggie

The Chinese reserve surprise The pure-play performance The copper problemAs bullish as I can be about gold, there”s little arguing with the fact that it has not been a runaway bull these last six months. Granted, nothing has been; it”s been a brutal market for everyone. But sometimes it”s useful to go back and revisit the premises of some of the stories. One of the big stories in commodities is consistently China. Maybe that”s where the gold action is. Below is a quick and dirty chart that compares the S&P 500 to the iShares Xinhua China 25 Index Fund (FXI) – a collection of China”s 25 largest companies that are open to international investment in one handy place. Of course, the results change radically depending on the time frame you look at, but for the past six months, China”s been beating the pants off the S&P 500.

The latest commodities bull news came Friday, when China announced that it had increased its gold reserves to 1,054 metric tons after years of reporting no change. In fact, as recently as March, China reported that its gold reserves were just 600 metric tonnes. The surprise 76% increase means that China is now No. 5 on the list of top gold reserves by country, as reported by the World Gold Council. China narrowly edged out Switzerland, which holds 1040.1 tonnes. Tonnes % of FX Reserves United States 8,133 78.90% Germany 3,412 71.50% France 2,487 72.60% Italy 2,451 66.50% China* 1,054 1.60% *This is the new, updated numberKeep in mind that it is not just countries that hold a lot of gold. The International Monetary Fund holds 3,217 tonnes, and SPDR Gold Trusts hold 1,104.45 tonnes, while all ETFs combined hold just over 1,600 tonnes. But the really interesting statistic to look at is the percent of reserves each country holds in gold. Considering that China is the world”s largest gold producer (some 288 tonnes last year), it seems fair they”d keep a bit more at home – though many analysts say they need to hold more because gold still makes up only 1.6% of China”s foreign exchange reserves, compared to the two-thirds to three-fourths of reserves that the top countries hold in gold. But just where did the 454 metric tons come from? China is not saying of course, as everything flows through the market. But at least notionally, it”s likely coming from domestic sources: At least that”s how comments by the head of the State Administration of Foreign Exchange, Hu Xiaolian, are being interpreted. Others think that China has been behind purchases in Shanghai. From MarketWatch:Traders in Hong Kong said the [sic] some of the additional reserves were likely acquired on the Shanghai gold market during January and February. The physical market remained well-bid by an unknown buyer despite bullion prices spiking to levels that normally cooled demand, they said. Purchases were made in Shanghai, traders said, in an effort to absorb domestic production and lessen the impact of bullion prices on global markets.The article went on to say:”The public nature of today”s disclosure casts doubt on whether China is aiming to buy gold on the international market,” J.P. Morgan analysts wrote in a note e-mailed to reporters late Friday.But given the disparity between how much gold China holds – percentagewise – and the rest of the world, there”s clearly a tonne (pardon the pun) of room for more gold to come out of the Chinese soil and flow into the Chinese State coffers. Since China is interested in supporting its economy, you would think that China”s gold companies would be the first to profit – especially if the latest purchases were made domestically. With that in mind, let”s revisit the companies we looked at a year ago in Chinese Gold Farmers.Henan Hongxing Mining Machinery Co., Ltd is a joint-stock mining machinery manufacturing enterprise integrated in scientific research, production and marketing. It is located at the High & New Technology Industries Development Zone of Zhengzhou,China with an area of 50 thousand m2 which includes 15,000 m2 of standard heavy duty industrial workshop. Equipments are more than 160 pieces, including large and medium sized metal processing, riveting and installing equipments. There are more than 660 workers including 80 administrators with secondary and senior occupational titles and engineering technicians. In order to promote the competitive strength, the advanced technologies have been introduced from America, Germany, Japan and Australia, which established the international advanced production line, first-class modern testing base as well as research centers of sand maker, mill and mine-selecting equipment. Scientific management, advanced processing technology and innovative manufacturing theory make the company become the mining machinery manufacturing and exporting base in China.

Hongxing Company lays much emphasis on the quality and clients. We serve clients with the quality guideline of being responsible for every working procedure, every product and every client. What we have done is for the clients and we believe that quality is the best way to develop market. All of the products have passed the authentication of ISO9001. Hongxing Brand is the Chinese Famous Brand. Reliable and stable quality is the key to success; our products are well known at home and abroad. Now we have tens of thousands of users throughout China and more than 30 world markets, such as: South Africa, Middle East, India, Philippine, Western Europe, Southeastern Asia.

As the professional manufacturer of complete sets of mining machinery, such as Sand making machine, Henan Hongxing is always doing the best in products and service.

Magnetic separator:http://www.crusher-machine.com/25.html Cement mill price:http://www.crusher-machine.com/23.html

Henan Hongxing Mining Machinery Co., Ltd is a joint-stock mining machinery manufacturing enterprise integrated in scientific research, production and marketing. It is located at the High & New Technology Industries Development Zone of Zhengzhou,China with an area of 50 thousand m2 which includes 15,000 m2 of standard heavy duty industrial workshop. Equipments are more than 160 pieces, including large and medium sized metal processing, riveting and installing equipments. There are more than 660 workers including 80 administrators with secondary and senior occupational titles and engineering technicians. In order to promote the competitive strength, the advanced technologies have been introduced from America, Germany, Japan and Australia, which established the international advanced production line, first-class modern testing base as well as research centers of sand maker, mill and mine-selecting equipment. Scientific management, advanced processing technology and innovative manufacturing theory make the company become the mining machinery manufacturing and exporting base in China.

Hongxing Company lays much emphasis on the quality and clients. We serve clients with the quality guideline of being responsible for every working procedure, every product and every client. What we have done is for the clients and we believe that quality is the best way to develop market. All of the products have passed the authentication of ISO9001. Hongxing Brand is the Chinese Famous Brand. Reliable and stable quality is the key to success; our products are well known at home and abroad. Now we have tens of thousands of users throughout China and more than 30 world markets, such as: South Africa, Middle East, India, Philippine, Western Europe, Southeastern Asia.










More What Is A Pardon Articles

It's only fair to share...Share on FacebookTweet about this on TwitterPin on PinterestShare on Google+Digg this

Comments are closed.

prettylink
Chickens Secondary Header
728x90 header
Search the Site
music-legal
film contracts
Script to Sales
Chicken Pens and Runs
Application Selection
Manfreedkitchen