China suspected of stockpiling gold to “reduce dependence on the greenback”

The study pointed out that this was the “largest volume ever recorded“, and WGC researchers have also identified a “substantial estimate of unreported purchases.“A report issued on November 22 now indicates that the mysterious gold buyer is probably China, and it further alleges that the country “has purchased a substantial amount of gold from Russia.

The mystery gold buyer of the third quarter is likely to be China, according to one market analyst.

According to an article published by Japan’s Nikkei news agency, China is suspected of stockpiling gold for “reduce its dependence on the greenback“. Nikkei’s report follows the recent survey published by the World Gold Council (WGC) that shows a large amount of gold purchased by the world’s central banks in the last quarter.

At the time, the WGC report also noted “unreported purchases” and of a mystery buyer who acquired substantial quantities of the precious metal. However, the WGC quarterly report does not disclose the identity of the mystery buyer.

Read:  Chile claims stability and continuity of its policies to attract investment in Spain

The Nikkei article suggests that the mystery buyer may be China and that the move is intended to reduce China’s dependence on the U.S. dollar. Speaking to the Nikkei reporter, precious metals analyst Koichiro Kamei told the publication that the size of the mystery buyer’s gold purchases is “unprecedented“.

China would hold between 1842.60 and 1850 million of gold. 1948.31 tons of gold according to statistics recorded by the World Gold Council. Data from March 2022 indicates that China was ranked sixth in terms of the country with the most gold reserves. Other reports estimate that China could be hoarding much more gold than has been recorded since 2019.

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

This is not the first time China has been secretive about its gold purchases, as it has not actively reported its gold holdings and purchases since 2019. In addition, the People’s Bank of China surprised the globe in 2015, as the public discovered that the central bank had been storing tons of gold in secret since 2009.

China’s gold storage program is one of many measures that eventually aim to move the country’s finances away from the U.S. dollar. In late October, economists discussed how Russia and China could potentially develop a gold-backed currency that could undermine the greenback.

Read:  Guaidó blames Maduro for deaths of Venezuelan migrants in Darién jungle

In addition, Russia and members of the BRICS countries revealed in June their intention to create a new international reserve currency. Saudi Arabia applied to join the BRICS nations at that time as well.

In late October, Rich Dad Poor Dad author Robert Kiyosaki cited Saudi Arabia’s request to join the BRICS as one of the reasons he thinks the U.S. dollar is in danger. The Nikkei article also notes that the Chinese government has “unloaded U.S. bonds“and that in recent times China has been offloading billions of dollars of U.S. debt.

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

WGC statistics indicate that the Russian Federation held approximately 2,298.5 metric tons of gold in January 2022. While China is considered the sixth largest nation in terms of the amount of gold it has in reserve, Russia is ostensibly the fourth largest nation in Europe in terms of gold reserves.

The Best Online Bookmakers March 28 2024

BetMGM Casino

Bonus

$1,000