| As one of the most rare and precious metal, gold has the unprecedented value andstability in history. Although it is no longer assuming the role of money, it plays animportant role in resolving the financial crisis, maintaining the stability of exchangerate and bearing the ultimate means in international payments because of the dualattributes of both commodity and currency. Since2001, Chinese official foreignexchange reserves have rapidly increased to$3.66trillion in September,2013due tothe continuous years of trade and capital twin surplus. On the contrast, Chinese officialgold reserves are only1.6%of total foreign exchange reserves leading to anunreasonable structure of the whole international reserves.Therefore, this paper researches on the moderate scale of Chinese gold reserves.Firstly, it analyzes the main influencing factors such as economical factors, politicalfactors and cultural factors of Chinese gold reserves, etc. When discussing economicalfactors, the writer finds that except for the impact from the earlier period of its own,Chinese gold reserves are mainly influenced by the currency in circulation, gold price,oil price, the real exchange rate, CPI and the dollar index. Secondly, this papercalculates the moderate scale of Chinese gold reserves as3749.79t-5096.59t by usingthe portfolio model, which counts for6.67%-9.06%of Chinese international reserves.Finally, the writer proposes four ways to achieve the goal of effectively increasing thegold reserves holdings, which are purchasing gold at the appropriate time, operatinggold, encouraging people to reserve gold, and investing in gold mine. This paper aimsto provide the theoretical support for moderate scale and ways for increasing theholdings of Chinese gold reserves. In the meantime, it also provides useful policyrecommendations to optimize the structure of Chinese international reserves. |
