Chinese Central Bank Purchases May Not Be A Done Deal

This Reuters report quotes a vice-governor of the PRC central bank as saying, "'We must keep in mind the long-term effects when considering what to use as our reserves.'" It was in response to another official, not with the central back, who publicly recommended that the central bank increase its gold reserves. That recommendation came right after the Dubai crisis.

To my eyes, a systematic PRC purchase program doesn't look like a done deal. Some gold bulls seem to assume that it is.