On behalf of Matterhorn Asset Management, Lars Schall talked with one of the prime researchers when it comes to the People’s Republic of China gold policy; Dutch analyst Koos Jansen. They discuss the many tricky details that have to be taken into account; since the Chinese gold buying is pretty much a covert operation.
Lars Schall: My first question would be, during this year, the Chinese Central Bank announced its new gold position. How much does China possess now and do you think those numbers are accurate?
Koos Jansen: Well, they state they have about 1,700 tons right now. I do not think those numbers are accurate. I think the numbers they disclose now every month since June, they are increasing their reserves a little bit, just like Russia does, and I think this is a strategy maybe communicated between Russia and China even to slowly push for a new monetary system, international monetary system. So, if they would’ve disclosed they have 3,000 tons or 4,000, whatever they have or see fit to disclose, they would really rock the boat in the international sphere.