Russia and China Increase Gold Holdings As Central Banks Continue Loose Monetary Policies

"...When you consider gold withdrawals from the SGE as well as the flows from China, one thing is certain and that is the demand for gold by China remains enormous.

Yet, despite the massive demand for physical gold from China, and as gold flows from West to East, the futures market of Comex is still largely responsible for setting the gold price.  But, the more the Chinese become involved in the global gold price mechanism the more their influence will rise in determining the actual price given these massive gold flows.  This of course will lead to a more credible reflection of prices as they will be determined according to the correct fundamentals and not simply by a few bullion banks that simply create price distortions.

But, it is not only the Chinese that have been adding physical gold to their reserves. Russia has been consistently increasing its holdings of the precious metal.

Russia added another 34.2 tons of the precious metal in September. This follows on the heels of a 1 million ounce increase in Russian gold reserves in August.

Since the global financial crisis, Russia has increased its gold reserves at an average pace of about 300,000 ounces per month. And, other countries formerly part of the Soviet Union have also increased their holdings of gold.

According to Bloomberg, Kazakhstan increased its gold reserves for the 35th straight month in August. The country purchased about 2.1 tons to bring its stash to roughly 210.2 tons. Belarus also expanded its reserves to 47.1 tons that same month..."

at http://goldsilverworlds.com/investing/russia-and-china-increase-gold-holdings-as-central-banks-continue-loose-monetary-policies/