It’s now official - among nations that reveal their gold holdings, China is the fifth-largest holder in the world.
You can see it on the chart below. With 1,054 metric tons, China is now just ahead of Switzerland in terms of how much gold it owns.
China’s hoarding gold
Now that its stockpiling of gold isn’t just a rumour, we expect Chinese buying of the precious metal to be on the rise.
Consider that China holds nearly half of its foreign currency reserves in US dollars. And it’s desperate to reduce that. Like the rest of us, the Chinese have been watching US government spending balloon. They question America’s ability to honour its debts. No wonder they’re aggressively boosting gold holdings.
The International Monetary Fund is poised to sell approx. $12 billion of its gold this year. And we think it’s very likely that China will be a significant buyer.
P.S. If you enjoyed this article you can find out more about our free email, The Right Side by clicking here.
