China Increases Reported Gold Reserves

ZeroHedge says China bought gold, I suspect they may be simply under reporting and raising the number slowly over time.

Bloomberg: China Boosts Gold Reserves 1% in August, Diversifying Assets
China boosted central bank gold holdings 1 percent as the country that rivals India as the world’s largest bullion consumer seeks to diversify its foreign exchange reserves.
The hoard rose to 54.45 million troy ounces in August from 53.93 million ounces a month earlier, according to data released by the central bank on Wednesday. China ended six years of mystery surrounding the holdings in July, revealing a 57 percent jump since 2009 and overtaking Russia to become the country with the fifth-largest stash.
Economics aside, gold has no political strings attached. A no brainer for any nation concerned about its sovereignty. Dumping dollars for gold is yuan bearish in the short-term because they are unlikely to sell gold to defend the yuan, but long-term it is bullish for the yuan.

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