‘Smart Trade Group’ - (China Gets Smart On Gold)…

PR Log (Press Release) – May 04, 2009 – ‘Smart Trade Group’, the boutique brokerage firm, believes that China’s diversification of part of its foreign exchange reserves into gold was inevitable given what it sees as the very real probability that the nation’s US dollar holdings will suffer as America continues to print money to finance the bailouts and stimulus packages it has undertaken.  

Sources familiar with analysts at ‘Smart Trade Group’ said the firm apparently suggested that China would begin acquiring gold in one of its periodical client communiqués citing this as one of many reasons that investors should add to their holdings.
 
Rumors circulating after the recent G20 meeting in London suggested that the IMF would sell a considerable part of its store of gold in order to fund various initiatives aimed at easing the global slowdown in poorer countries around the world but it would appear that the Chinese have been steadily increasing their holdings to 1,054 from 454 tons and ‘Smart Trade Group’ believes that they are likely to continue to buy even more.

‘Smart Trade Group’ sources pointed to recent comments by the Chinese Prime Minister in which he expressed concern at what he saw as the probability of substantial erosion in the value of China’s holdings of US Treasury and agency debt as reason for the continuation of the country’s gold acquisitions.