Even China — which is obviously embarking on a long term plan to dump dollars, and move its reserves into hard assets — is unnerved by the surge in gold.
Telegraph: Hu Xiaolian, the vice-governor of the central bank, said Beijing would not buy gold indiscriminately.
“We must keep in mind the long-term effects when considering what to use as our reserves,” she said. “We must watch out for bubbles forming on certain assets and be careful in those areas.”
China announced this year that it had quietly doubled its gold reserves to 1,054 tonnes, the world’s fifth largest holding. India has also joined the rush, gobbling up half the IMF’s gold sale.
Gold dipped modestly today, though it remains above $1200.
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