China suspected of hoarding gold to ‘reduce reliance on the dollar’

Report: China Suspected of Stockpiling Gold to ‘Cut Greenback Dependence’

During the first week of November, a World Gold Council (WGC) report that covered global gold demand over the latest quarter noted that central banks around the world purchased about 400 tons of gold in the third quarter of 2022. and WGC researchers also found a “significant estimate of unregistered purchases.” The report, released Nov. 22, now says China is likely the mystery buyer of the gold, and goes on to claim that the country “bought a significant amount of gold from Russia.”

Market Analyst Says Q3 Gold Secret Buyers Likely China

According to a report published by the Japanese news agency Nikkei, China is suspected of hoarding gold to “reduce dependence on the dollar.” The Nikkei report follows a recent study released by the World Gold Council (WGC) that shows a large amount of gold bought by global central banks last quarter.

At the time, the WGC report further noted “unrecorded purchases” and a mystery shopper who purchased significant amounts of the precious metal. However, the WGC quarterly report does not reveal the identity of the mysterious gold buyer.

The Nikkei article suggests that China is considered a mystery shopper, a move intended to reduce China’s dependence on the US dollar. Speaking to the Nikkei, precious metals analyst Koichiro Kamei told the publication that the extent of the Mystery Buyer’s gold buying is “unheard of.”

Report: China suspected of stockpiling gold to 'reduce reliance on dollar'
It is believed that China held between 1842.60 and 1948.31 tons of gold, according to statistics recorded by the World Gold Council. March 2022 data shows China ranked sixth among the countries with the largest gold reserves. Other reports suggest that China may be stockpiling much more gold than has been recorded since 2019.

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

This is not the first time that China has hidden information about gold purchases, as China has not actively reported on gold holdings and purchases since 2019. In addition, the People’s Bank of China surprised the world in 2015 when the public learned that the central bank was hoarding tons of gold. gold secretly since 2009.

China’s gold accumulation scheme is one of many moves that may be aimed at distancing the country’s financial performance from the US dollar. In late October, economists discussed how Russia and China could potentially develop a gold-backed currency that could undermine the dollar.

In addition, in June, Russia and the BRICS countries announced plans to create a new international reserve currency. At the same time, Saudi Arabia applied to join the BRICS.

In late October, Robert Kiyosaki, author of Rich Dad Poor Dad, cited Saudi Arabia’s request to join the BRICS as one of the reasons he believes the US dollar has collapsed. The Nikkei article also notes that the Chinese government is “dumping US bonds” and recently China has been getting rid of billions in US debt.

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

According to WGC statistics, as of January 2022, there were about 2,298.5 metric tons of gold in the Russian Federation. While China is considered the sixth largest country in terms of the amount of gold it has in reserves, Russia is allegedly the fourth largest country in Europe by this measure. gold reserve.

Tags in this story

BRICS countries, BRICS reserve currency, Central Bank of the Russian Federation, Central banks, Gold currency, international reserve currency, Nikkei Japan, 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 says China is hoarding gold to reduce dependence on the US dollar? Let us know what you think about it in the comments section below.

Jamie Redman

Jamie Redman is the head of news at News and a fintech journalist based in Florida. Redman has been an active member of the crypto community since 2011. He is passionate about bitcoin, open source and decentralized applications. Since September 2015, Redman has written over 6,000 articles for News about new revolutionary protocols.

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