The People’s Bank of China (PBOC) reported an increase in the country’s gold reserves of 18 tons in March, continuing its buying spree. China has steadily increased its gold reserves since November, buying more than 100 tons in the last five months. The Asian state now has 2,068 tons in its coffers.
China bought 18 tons of gold in March, PBOC reports show
China further increased the size of its gold reserves in March. According reports From the People’s Bank of China, the size of China’s national gold reserve increased by 18 tons in March, reaching 2,068 tons in total. The purchase marks the continuation of a five-month buying spree that the country carried out starting in November last year.
after not reports of gold purchased since 2019, the country has been buying gold consistently, having purchased 102 tonnes in the aforementioned five-month period. Demand for gold has been strong in 2023, according to the World Gold Council, which believes central banks will keep hoarding gold this year.
In 2022, the same institution recorded record numbers of gold purchases by central banks, with central banks purchasing their largest amounts of gold since 1974. The reasons behind this renewed gold rush have to do with the need to seek refuge in safer assets during inflationary times.
According to economists, China may be preparing to issue a gold-backed currency as part of the BRICS strategy to reduce dependence on the US dollar. In October, Craig Singleton, a senior fellow at the Foundation for Defense of Democracies, explained that this could be the case given the large amount of gold the nation buys.
More recently, State Duma Vice President Alexander Babakov stated that such a currency could be presented at the BRICS summit in August, possibly backed by gold and other commodities.
Gold Price Predictions
The continued demand for gold by central banks and the macroeconomic headwinds facing some of the world’s largest economies have analysts predicting a rise in gold prices in the future.
Jan Nieuwenhuijs, a gold market analyst, has said that gold prices could touch the $8,000 mark in the next decade, as central banks start dumping foreign exchange reserves and go gold. Furthermore, Peter Schiff, an economist and known gold lover, predicted the arrival of a gold bull market, stating that gold still has legs to continue growing and that this will cause capitulations for Wall Street investors.
What do you think about China’s gold hoarding? Tell us in the comment section below.
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