China Suspected of Hoarding Gold to ‘Cut Greenback Addiction’ – Economics Bitcoin News

During the first week of November, the World Gold Council (WGC) report covering the latest quarter’s global gold demand found that central banks around the world bought nearly 400 tons of gold in the third quarter of 2022. The study found it was the “most ever recorded,” and WGC researchers also found a “substantial estimate for unreported purchases.” A report released on Nov. 22 now claims that the mysterious gold buyer is likely China, and further said that the country “has bought a significant amount of gold from Russia.”

The mysterious third-quarter gold buyer is likely China, says a market analyst

According to a report released by Japan’s Nikkei news agency, China is suspected of hoarding gold to “reduce dependence on the greenback.” The Nikkei report follows a recent study released by the World Gold Council (WGC) showing a large amount of gold bought by the world’s central banks last quarter.

At the time, the WGC report also noted “unreported purchases” and a mysterious buyer purchasing substantial quantities of the precious metal. However, the WGC’s quarterly report does not reveal the identity of the mysterious gold buyer.

The Nikkei article suggests that the mystery buyer is thought to be China, and the move is intended to reduce China’s reliance on the US dollar. Speaking to the Nikkei reporter, precious metals analyst Koichiro Kamei told the publication that the scale of the mystery buyer’s gold purchases is “unheard of”.

China is believed to hold between 1842.60 B.C 1948.31 tons of gold, according to statistics recorded by the World Gold Council. Data for March 2022 indicates that China ranked sixth in terms of countries with the largest number of gold reserves. Other reports believe that China is accumulating much more gold than it has recorded since 2019.

Market analyst Itsuo Toshima believes that the country has probably bought a large sum of gold from the Russian Federation. “China has probably bought a significant amount of gold from Russia,” Toshima told the Nikkei reporter.

This is not the first time China has kept its gold purchases under wraps, as China has not actively reported gold reserves and purchases since 2019. Moreover, the People’s Bank of China surprised the world in 2015, as the public found that the central bank was hoarding tons of gold. gold secretly since 2009.

China’s gold hoarding scheme is one of many moves that may aim to move the country’s financials away from the US dollar. In late October, economists discussed how Russia and China could potentially develop a gold-backed currency that could undermine the greenback.

Also, in June Russia and members of the BRICS countries revealed plans to create a new international reserve currency. Saudi Arabia also applied to join the BRICS nations at the time.

In late October, Rich Dad Poor Dad author Robert Kiyosaki cited Saudi Arabia’s bid to join the BRICS as one of the reasons he believes the US dollar is toast. The Nikkei article also notes that the Chinese government has “dumped US government bonds” and China has gotten rid of billions of US debt in recent times.

Market analyst Toshima told Nikkei staff writer Munemasa Horio that “The People’s Bank of China probably bought a part of the gold reserves of the Central Bank of the Russian Federation of more than 2,000 tons.”

Statistics from the WGC state that the Russian Federation held approximately 2,298.5 metric tons of gold as of January 2022. While China is believed to be the sixth largest nation by the amount of gold it has in reserve, Russia is apparently the fourth largest nation in Europe in terms of gold reserves.

Tags in this story

BRICS Nations, BRICS Reserve Currency, Central Bank of the Russian Federation, Central Banks, Gold Backed Currency, International Reserve Currency, Japanese Nikkei, Munemasa Horio, Nikkei, Nikkei Asia, PBOC, People’s Bank of China, Russia, Saudi Arabia , US bonds, US debt, US dollar, US, WGC report, World Gold Council

What do you think of the report that China is hoarding gold to reduce reliance on the US dollar? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is News Lead at Bitcoin.com News and a financial technology journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.




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