Thursday, June 10, 2010

Time to buy? Now even China is trying to talk gold down

BEIJING -- The gold market is too small, illiquid, and volatile to be suitable for asset allocation, China's State Administration of Foreign Exchange (SAFE), said in its annual report published on Thursday.

SAFE, part of the central bank, the People's Bank of China, last year revealed its gold reserves had grown to 1,054 tonnes from 600 tonnes in 2003, mainly the result of buying up local production. It has not given any update of its holdings since then.

Good old China. Remember actions speak louder than words.