Where Did the 14.6 Million Ounces of Gold Come From?

In 2003, China’s central bank began adding to its reported 600 tons (19.3 million ounces) of gold reserves.

I heard reports of these purchases from a gold analyst friend, who said his source was an anonymous bullion trader who claimed to have handled some of these purchases. Periodically, this friend would pass along the amounts being spent to purchase Chinese gold reserves. But, since I had no other source of confirmation that this was happening, I did not immediately pass along this unverified story.

In 2005, I received information from another source that this activity was under way and