MONDAY 6:30 AM - THURSDAY 5 PM
FRIDAY 6:30 AM - 3:30 PM PST
MONDAY 6:30 AM - THURSDAY 5 PM
FRIDAY 6:30 AM - 3:30 PM PST
4-minute Read

China has been on a gold shopping spree, with official statistics significantly understating the true extent of the nation’s gold purchases.

Despite China holding the title of the world’s largest gold producer, its central bank has taken a leading role in a notable increase in international gold acquisitions. This strategic move aims to diminish the nation’s dependence on the dollar. 
 
In 2022, China produced approximately 375 tons of gold, a figure sourced from the World Gold Council. However, in the initial nine months of the current year, China’s state bank secured 181 tons out of the total 800 tons acquired by central banks globally.  
 
As of July, China’s gold reserves are estimated to be 2,113 tons, ranking fifth globally, trailing behind the Federal Reserve’s 8,133 tons. Notably, these reserves do not constitute 4 percent of China’s total declared assets. Remarkably, the Chinese Central Bank has consistently expanded its gold stockpile for an uninterrupted 11-month period.  

Why the Demand? 

In an era characterized by financial and geopolitical uncertainties, China’s increased focus on gold has become more apparent. Although the specific details of China’s gold holdings and acquisitions remain undisclosed to the international community, experts believe that this trend signifies a deliberate shift away from dollar-denominated assets. This strategic move is part of a broader, gradual initiative to diversify its holdings amidst the challenges of the global economic landscape.

  Contrary to a direct attempt to influence the U.S. economy, China’s pursuit of gold appears to be a pragmatic maneuver aimed at bolstering its fiscal position. This strategic allocation towards gold, recognized as the world’s premier investment metal, gains particular significance as bond markets undergo volatility and diplomatic relations with Western nations face challenges. This approach reflects China’s proactive stance navigation the complexities of the economic environment and securing its financial interests in response to evolving global dynamics.  

U.S. and China

The persistent geopolitical tensions between the United States and China have intensified, particularly following incidents like the appearance of a surveillance balloon over American airspace earlier this year- a situation Beijing has denied as having malicious intent. The atmosphere is further strained by an ongoing and protracted trade dispute between the two nations, coupled with heightened U.S. concerns regarding national security implications associated with China. 

In the aftermath of the spy balloon incident, increased scrutiny has been directed towards land acquisition near U.S. Air Force Bases. Accusations of property theft and the unauthorized acquisition of American agricultural technology have also come to the forefront, contributing to the heightened tensions between the two nations.  

China’s Gold Holdings

 

  • China’s central bank has bought gold for the 12 consecutive month in October. The latest purchase was around 23 metric tons, increasing the total holdings to 2,215 tons.
  • China has produced 7,000 tons of gold.  
  • More than 50% of Chinese gold mining is state-owned and doesn’t export any of the gold it produces. So, all the gold China has mined has stayed in China 
  • It is estimated that China is holding at least 33,000 tons of gold 
  • Half the gold China has, approximately 16,500 tons, is state owned. This is twice what America possesses

Despite the lack of precise reporting on China’s gold holdings, the presence of substantial reserves is evident. Gold, recognized for its role in preserving purchasing power amid inflation and maintaining long term value resilience, is a pivotal asset during economic uncertainties. At Reagan Gold Group (RGG), we provide gold and silver investment solutions tailored for challenging economic climates and heightened international tensions. Contact RGG today to explore how incorporating physical gold and silver into your portfolio can hedge your financial future. 

High Inflation has given Workers a 3% Pay Cut Diversify your Assets

 

Despite the lack of precise reporting on China’s gold holdings, the presence of substantial reserves is evident. Gold, recognized for its role in preserving purchasing power amid inflation and maintaining long term value resilience, is a pivotal asset during economic uncertainties. At Reagan Gold Group (RGG), we provide gold and silver investment solutions tailored for challenging economic climates and heightened international tensions. Contact Reagan Gold Group today to explore how incorporating physical gold and silver into your portfolio can hedge your financial future. 

Reagan Gold Group-Logo

Add Stability to Your Retirement Portfolio

Contact us to learn how you can “recession-proof” your retirement & unlock massive hedging opportunities.

Request your FREE IRA Investor's Kit

At Reagan Gold Group, our IRA commodity specialists will help you setup your own Precious Metals IRA account.

  • Complete all the fields in the form below.
  • Verify your shipping address over the phone.
  • Receive your FREE guide in 2-3 days.
You're one step away!

FREE 1 OZ .999 PURE SILVER

Ronald Reagan Coin*

* ON QUALIFIED ORDERS