China Suspected of Stockpiling Gold to ‘Cut Greenback Dependence’ – Economics Bitcoin News

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During the first week of November, the report of the World Gold Council (WGC), which covered the global gold demand of the last quarter, noted that central banks worldwide bought close to 400 tons of gold in Q3 2022. The study highlighted that it was the “most recorded,” and the WGC researchers also spotted “a large estimate for unreported purchase.” A report published on November 22 now says that the mystery gold buyer is likely to be China, and it further claimed that the country “bought a large amount of gold from Russia”.

Third Quarter’s Mysterious Gold Buyer Is Likely China, Market Analyst Says

According to a a report published by the Japanese news media Nikkei, China is suspected of stockpiling gold to “cut dependence on the greenback”. The Nikkei report follows the recent study published by the World Gold Council (WGC), which shows a large amount of gold bought by the world’s central banks in the last quarter.

At the time, the WGC report further noted, “an unreported purchase” and a mysterious buyer who acquired large quantities of the precious metal. However, the WGC’s quarterly report does not reveal the identity of the mystery gold buyer.

The Nikkei article suggests that the mystery buyer is believed to be China, and the move is aimed at cutting China’s dependence away from the US dollar. Speaking to the Nikkei reporter, precious metals analyst Koichiro Kamei told the publication that the size of the mystery buyer’s gold purchases was “unheard of.”

Report: China Suspected of Storing Gold for
It is believed that China holds between 1842.60 to 1948.31 tons of gold, according to statistics recorded by the World Gold Council. Data from March 2022 indicates that China was sixth in terms of countries with the most gold reserves. Other reports believe that China may accumulate much more gold than what has been recorded since 2019.

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

It is not the first time that China has been secretive about gold purchases, as China has not actively reported 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 secretly since 2009.

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

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

In late October, Rich Dad Poor Dad author Robert Kiyosaki cited Saudi Arabia’s request to join BRICS as one reason why he believes the US dollar is toast. The Nikkei article also notes that the Chinese government is “offloading US bonds” and in recent times China has written off billions in US debt.

Market analyst Toshima told Nikkei writer Munemasa Horio that the “People’s Bank of China is believed to have bought part of the gold holdings of the Central Bank of the Russian Federation of more than 2,000 tons.”

WGC statistics say that the Russian Federation held about 2,298.5 tons of gold as of January 2022. While China is thought to be the sixth largest nation for 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, Japan’s Nikkei, Munemasa Horio, Nikkei, Nikkei Asia, PBOC, People’s Bank of China, Russia, Saudi Arabia, United States bonds, US debt, US dollar, US, WGC report, World Gold Council

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

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Jamie Redman

Jamie Redman is the News Leader at Bitcoin.com News and a financial tech journalist living 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 over 6,000 articles for Bitcoin.com News about the disruptive protocols coming out today.




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