SASAC official calls for sharp increase in gold reserves

An official at the State-owned Assets Supervision and Administration Commission (SASAC) said that China should increase its reserves of gold to 10,000 metric tons over the next decade from around 1,000 mt at present, the South China Morning Post reported, citing state media. Ji Xiaonan, the head of the supervisory committee at SASAC, told the China Youth Daily that China should increase its holdings of the precious metal to 6,000 mt in the next three to five years, and 10,000 mt in next eight to ten years to reduce losses from a depreciating US dollar. His comments come after the China Gold Association’s claim on Monday that China may break gold demand and output records this year. David Barclay, a commodity strategist with Standard Chartered Bank, said that while there was a limit on the amount of gold China could accumulate, "It certainly seems that there’s scope for further addition." As of April 2009, China’s reserves of gold amounted to 1,054 mt.