China Increasing Gold Holdings at Steady Pace
The Chinese central bank continues to increase its gold holdings at a steady pace.
Figures released by the People’s Bank of China indicate its gold stash went up another 1% in September, according to a Reuters report:
Gold reserves rose by 480,000 fine troy ounces, or 14.9 tons, to 54.93 million ounces, or 1,708.5 tons at the end of September, the People’s Bank of China (PBOC) said.”
This follows a trend we’ve seen ever since China announced its gold holdings for the first time in nearly six years last summer. The central bank added 16.2 tons in August and nearly 19 tons in July, a steady 1% increase each month.
In mid-July, the Chinese central bank announced its gold holdings had grown by 57% to about 1,658 tons. It was the first official update to China’s gold reserves since 2009. That lifted the nation above Russia to become the fifth largest holder of gold in the world.
ANZ commodity strategist Victor Thianpiriya told Reuters he expects the Chinese gold buying spree to continue, despite rising prices in October.
Their buying has been pretty consistent. It’s clear that they consider gold to be an important part of their holdings. So it won’t surprise me if they continue to add to reserves.”
Since July, the Chinese central bank has released updates on its gold holdings each month. Many analysts believe China is stockpiling gold to stabilize its yuan currency in the eyes of the international community. That would explain the sudden increase in transparency.
As we reported last month, other countries, particularly Russia, continue to increase their gold reserves as well.
Central bankers understand that gold provides stability and historically preserves wealth over time. This is precisely why countries around the world continue to hold and increase their supplies of the precious metal, and why wise investors also buy gold.
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