Jamal Al-Farouq In March, China’s government-owned bank, the People’s Bank of China (PBOC), said it bought 18 tons of gold. This means that over the last five months, they have been buying a lot of gold – more than 100 tons in total! That puts their grand total of gold reserves at 2,068 tons.
China’s Gold Rush
In March, China increased the amount of gold they own. According to the People’s Bank of China, the country has now 2,068 tons in total after adding 18 tons that month. This continues a pattern of steady buying which started in November.
Since 2019, the country has been buying a lot of gold – over 102 tons in just five months! The World Gold Council says that people really want gold this year and they think that countries will keep collecting it too.
In 2022, a lot of banks bought a large amount of gold – this was the most they had purchased since 1974. People decided to buy so much gold because there were times when prices were really high, so they wanted something safe that would protect their money.
Economists think China is getting ready to issue its own kind of money backed by gold. This could be part of their plan to break away from using the U.S. dollar with other countries in the BRICS group – Brazil, Russia, India, and South Africa. In October, Craig Singleton from the Foundation for Defense of Democracies noticed that they’ve been buying a lot of gold recently which is why he thinks this might be what’s going on.
Alexander Babakov, a person in the Russian Parliament, said that at the BRICS summit (a meeting of countries from around the world) this August, there might be a new type of currency presented. This new currency may be supported by gold and other items of value.
Central Banks Rush to Buy Gold, But What Does it Mean for Wall Street Investors?
Central banks are really wanting gold for various reasons, and some of the biggest countries in the world have a lot of economic issues happening. Because of this, experts think that the price of gold is likely to go up soon.
Jan Nieuwenhuijs, a gold market expert, predicts that the price of gold will go up to around $8,000 over the next ten years. This is because central banks are reducing the amount of money they keep in other currencies and investing more into gold instead. Peter Schiff, an economist who supports gold, says he believes it will continue to increase which will be bad news for Wall Street investors.
Do you have an opinion about China buying up lots of gold? Let us know in the comments section!
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