Most of the international financial press was waiting on a Chinese announcement about their gold holdings. I fully expected it as well since it has been five years since the last announcement. It has not happened. This is during a year where China has not increased their Treasury holdings. This is during a year where more financial warfare talk has happened, and Russia has been open about gold purchases. There have been multiple global conferences with big economic talk and symbolic picture arrangement. Why would China stay mum? China staying silent actually helps their accumulation of gold and set up for the final reveal.
China has financial problems just like everyone else. They have some advantages. They also are a player in the current set up that shifts currency their way. The Chinese have been on a buying spree, securing resource producers, building the "string of pearls" concept and buying gold and oil. The entire "Money to Africa" play is about gobbling up resources and doing so that does not come with the progressive belief buffet from the US State Department. Their UST holdings have been flat for over a year. Shanghai keeps importing gold by roughly one hundred of tonnes a month, but unless there is a private intermediary, those are private consumption numbers. The numbers are giant, and if you include that China does not export its own gold production, they, along with Russia and some gold purchasers, are sucking in nearly all available gold. The FED and US banking cartel wants gold cheap to keep the peasants sedate and kill any alternative to the dollar. China wants gold cheap to buy more.
This is why they have been keeping quiet about their gold total. When they announced their gold holdings in spring of 2009, that combined with QE and the FED balance sheet expansion, sparked a rise in gold from $900+/- to $1200 by the fall. This was just after announcing their gold holdings crossed 1000 tonnes. Some writers question if 1000 was even the true number then. Chinese officials have mentioned 8500 tonnes as a target. If that is the case, why would they want to announce a massive jump from 1000 tonnes to say 2000, 3000 or even 4000? That announcement could set off another jump in the gold price, making all future purchases more expensive. This also hurts them as Chinese firms have been buying stakes in gold producers. A lower gold price depresses their value, and it also forces some gold producers to either sell off more marginal mines or seek capital. The Chinese can provide capital. Worst case scenario would be a gold reserve holdings announcement setting into motion a dollar crisis before they were ready.
The Chinese also want a slower bleed out of the US. A slower bleed that allows use of the current system (which favors China) to remain in place gives them more time to accumulate gold, set up Shanghai and position themselves better for whatever shake up and new order is created. What happens if the current order is dismantled, and the Chinese declare they have 6000 or even 10,000 tonnes of gold? America would then be forced to audit their gold holdings to prove they are an equal correct? Global embarrassment time. Most government numbers have an element to phony to them, and PRC and USG are both maestros of the art. It makes sense to our Western minds to announce, show some cards and play on. The problem is the Chinese are tackling problems differently. The South China Sea island dispute melted away when the Chinese decided to build their own island. There can be no dispute if they build the island. That must have been on page 104 of Sun-Tzu's "The Art of War". As far as gold, China has no reason to announce their holdings. They just have to accumulate, wait and watch.