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Chinese Stockpile Gold at Accelerated Pace in November

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China continued adding to its gold reserves and accelerated its pace in November.

china bank

According to Bloomberg, the Chinese upped their stash of of gold an estimated 21 tons last month, the largest increase in at least five months.

The value of gold assets was $59.52 billion at the end of last month from $63.26 billion at end-October, according to data on the People’s Bank of China website released Monday. That works out to 56.05 million troy ounces or about 1,743 tons, based on the London Bullion Market Association afternoon price auction on Nov. 30, Bloomberg calculations show. The stash was 55.38 million ounces a month earlier.”


China announced its gold holdings for the first time in six years in July. Since then, it has continued to buy gold, adding 14 tons in October, 15 tons in September, 16 tons in August, and 19 tons in July.

Saxo Bank A/S analyst Ole Hanse in Copenhagen told Bloomberg the Chinese are thinking “long-term.”

They are continuing to diversify their foreign reserve holdings.”

Many analysts say the gold buying spree was part of China’s strategy to stabilize the yuan as it pushed for inclusion in the IMF’s benchmark currency basket. The IMF announced the Chinese currency’s inclusion in the special drawing rights basket last week.

The announcement wasn’t much of a surprise. A draft report compiled by IMF staff in late October reached a favorable conclusion on including the Chinese currency. The fact that China picked up its gold-buying pace in November hints it is eyeing longer-term goals beyond simply gaining inclusion in the exclusive IMF reserve currency club.

As we reported last week, the yuan’s inclusion in the IMF basket was a big leap forward for the Chinese. The New York Times called it a “milestone decision.” It was yet another step toward China surpassing the United States as an economic power. Just a year ago, China surpassed the US as the largest economy in the world by one measurement. This decision creates a foundation for the country to move forward with a longer-term strategy. As Peter Schiff has said, China could eventually un-peg from the dollar and back the yuan with its increasing gold reserves.

China isn’t the only country growing its reserves of the yellow metal. According to Bloomberg, Russia and Kazakhstan are also buying up gold. Central banks and other institutions boosted gold purchases to the second-highest level on record in the quarter to September, according to the World Gold Council.

Central bankers recognize the value of gold as a stabilizing force and a traditional store of wealth. Wise investors will follow their lead and buy gold.

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2 thoughts on “Chinese Stockpile Gold at Accelerated Pace in November

  1. Jake says:

    Expecting us to believe that China has only 1,743 tons of gold is an insult to our intelligence. Taking the word of government controlled bank of a Communist country is not my idea of dependable information. The Chinese have been hoarding gold for at least a decade, that I know of. In addition, they are one of the world’s largest producers of gold, but they never sell it. My guess is something closer to 20,000 tons. They have big ambitions and 1,743 tons won’t cut it. Nor do I believe that the United States has 8,133 tons of gold since no one has seen it since the 70’s and the government would not agree to an audit, even though Ron Paul had tried for 30 years. Further confirmation of deception and fraud is that the Fed refused to return Germany’s own gold a few years ago. I’m not sure what action they have taken, but several other countries have since requested their gold out of the Fed vault in New York with the same result. People, the United States Government is a criminal enterprise that will come crashing down under its own weight of graft and corruption very soon.

  2. Robert Hinks says:

    An excellent source of news and in-depth analysis about China and Gold is the Singapore website “bullionStar.com” , in particular the blogs by Koos Jansen. I recommend two in particular – 1. “Renminbi Internationalization and China’s Gold Strategy” (12-05-15), and 2. “PBOC Gold Purchases: Separating Fact From Fiction” (5-20-15). One of the things that Mr. Jansen points out in his blogs is that China does not hide the reasons behind its feverish interest in gold.
    Also, keep an eye on China Gold International Resources Corp Ltd. (CGG on the TSX)

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