The World Gold Council (WGC), the London headquartered market development organisation for the gold industry, and the China Gold Association have signed a ‘Comprehensive Strategic Cooperation Agreement’, at the official launch of the China Gold Congress & Expo 2014 in Beijing.
The aim of the agreement is stated to be to enhance the global understanding of the gold market and supply chain and China’s role within it through the exchange of research, data insights and developing innovations for gold in investment, technology and jewellery.
One hopes that this may give WGC researchers perhaps a better understanding of the Chinese gold supply and demand situation than seems to be the case at present where known import figures, stated gold demand figures and published data out of the Shanghai Gold Exchange seem to suggest a wide disparity in apparent demand in particular. However given the China Gold Association’s ties with the Chinese government, as will have any Chinese trade organisation, which may have an agenda to only let Western organisations, like the WGC, know what it wants them to know, then the co-operation agreement might not actually provide a great deal of new information on these disparities, although any such regular contact should be helpful.
It is also highly unlikely to throw any new light on whether the Chinese Central Bank is surreptitiously increasing its gold reserves without reporting them to the IMF – as many Western analysts believe – or not. We will almost certainly have to wait until the Chinese government deems it politic to announce any reserve upgrade, if any, before we know for sure.
This post was published at Mineweb