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China may look to gold acquisition

15:49:29 GMT, 11 May, 2007
China has only a very small proportion of gold accounting for its total reserves in comparison with other countries like the US but the Asian country could soon be about to change this fact.Two weeks ago, the People's Bank of China vice-governor Xiang Junbo, explained that his country's government should take steps to "appropriately increase its gold reserves".At present, Goldseek.com reports that China has 1.3 per cent of its reserves in gold which is dwarfed by the percentage that the US holds (75.9 per cent) as well as the European region which has 24.4 per cent of its reserves being accounted for by gold.Goldseek.com goes on to suggest that China's $1.2 trillion (£605 billion) cash reserves could "soon" be diluted by the acquisition of gold.According to the website, the 1.3 per cent of China's total reserves equates to an accumulation of gold that is 19.29 million ounces and this would represent a $12 billion (£6 billion) stash.

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