China Admits It's Been Secretly Stockpiling Gold

On Friday, China admitted to something it's long been suspected of - secretly stockpiling gold. 

Of the countries that disclose their gold holdings, China is now ranked fifth in the world, ahead of the Swiss, the former beacon of a solid currency.

Since 2003, China has increased it's gold holdings by 75%.  Over the same time period, the Chinese have been gradually moving their foreign reserves out of US assets.

I can't think of any reason why these trends would reverse themselves anytime soon.  And apparently, neither can traders, as they bid gold back up above $900 on the news.

There's probably a decent chance any gold the IMF sells will never hit the market, as the Chinese may be waiting to gobble it up.