BEIJING (Commodity Online): China is becoming world’s super power in terms of economy and its power to control the market. Recently Cheng Siwei, former vice-chairman of the standing committee of the Chinese Communist Party, criticized the way US is printing money to beat economic downturn and said if the US continues to do so, China has to change its strategy of holding foreign reserves in US dollar.

That is why China is slowly shifting to gold and other currencies. Gold is definitely an alternative, said Cheng, “but when we buy, the price goes up. We have to do it carefully so as not to stimulate the market”.

Then began China’s rush for gold. And China is buying gold secretly to bolster its reserves. China mines more gold each year than the US or South Africa. Yet the net gold exports from China is zero.

Chinese use gold in industry, such as for electronics, jewellery and the like. But much of the rest of Chinese gold purchases go into state coffers.

The price of gold in the international market can further climb to more than $1020 soon.

Heavy buying of gold in international market from China was the main reason for this hike in prices. After India, China has bought a large quantity of gold from the international market and if this heavy buying continues gold price can increase in a couple of weeks.

However, the highest price in international market remained at $1024 on March 17, 2008 at that time the gold was available at Rs 24,100 per tola and at Rs 20,657 per 10 grams in the local market.

It was not just gold that was hit with high price but also other metals as silver, platinum and copper whose rates have seen a hike in the recent days. Although the oil prices in the international market seem to be at flat, this jeopardy in the glittery metals seem to be because of the heavy gold buying by major gold dealer countries like India.

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