China Adds Nearly 12 Tons of Gold to Reserves

China added gold to its reserves again in January added. The central bank bought the last month 11.8 tonnes gold, after adding more than 10 tonnes to its stock in December. With this purchase, the country brings its gold reserves to 1,864 metric tons, good for a market value of almost $79 billion. That seems like a lot, but in relation to the total reserves of the Chinese central bank, it is only a few percent.

Since the turn of the century, China has gradually increased its gold reserves from less than 400 tonnes to more than 1,800 tonnes. China also promotes the ownership of gold among its own population. For a moment, it seemed that the central bank had stopped Buy gold, because in the period from October 2016 to December last year, the gold supply did not change. Why China is now active in the gold market again can only be guessed at, because there is no official press statement. The deteriorating trade relations between China and the United States may have played a role in this.

China and Russia buy gold

Both China and Russia have been buying precious metals on a large scale in recent years. No other central bank bought bullion on such a scale. It is not only a reflection of increasing wealth in these countries, it is also a way to diversify the reserves. China has built up a lot of reserves since the beginning of the century by producing a lot of goods for the rest of the world. Russia benefited from rising prices and increasing demand for oil and gas.

China not only has the highest gold production in the world, the country is also the largest importer of the precious metal. This market is likely to grow further in the coming years, as more Chinese enter the middle class. In China, it is customary to buy gold jewelry and investment gold as an alternative form of savings. The precious metal is relatively stable in value compared to the yuan.

China and Russia continue to buy gold