N.Korea Turns to Selling Gold Reserves (to China) Sep 2012

Chinese gold buying

Chosun: N.Korea Turns to Selling Gold Reserves

Tracking China’s gold buying outside the international markets to avoid moving the gold spot price.

Notable excerpts:

North Korea has exported more than 2 tons of gold to China over the past year to earn US$100 million.

They are selling not only gold that was produced since December last year, when Kim Jong-un came to power, but also gold from the country’s reserves and bought from its people.

North Korea produces one to two tons of gold a year. Mines in South and North Pyongan Province and North Hwanghae Province are believed to have around 1,000 to 2,000 tons of gold deposits.

North Korean trading companies have secretly been selling gold in China, said one ethnic Korean businessman in China. “These companies are operated by the military and Workers Party and are collecting gold from the mines and forcefully buying up gold from the people in certain cases.”

Many North Koreans apparently hide stashes of gold to maintain some safe assets amid runaway inflation.

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