China Snaps Up More Gold

China is continuing to accumulate gold at an aggressive pace. For the second month in a row the country’s central bank, the People’s Bank of China (PBOC), revealed large purchases of the precious metal, increasing its holdings by 30 metric tons in December. The report comes on the heels of November’s announced accumulation of 32 tons, which was the PBOC’s first publicly reported purchase in
more than three years.

Market watchers believe China may have accumulated even more gold in recent months than is publicly acknowledging. During the third quarter of last year, the World Gold Council estimated that central banks had purchased nearly 400 tons of gold, which would be a quarterly record. But only about one-quarter of those purchases were publicly identified, leading to speculation that China was a major buyer in the third quarter of 2022. The country has a history of keeping quiet about its gold holdings for years and then suddenly revealing major purchases.

China’s official gold reserve holding stand at 2,010 metric tons, according to the World Gold Council, the seventh largest reserve holding of gold in the world. The United States government holds more than four times as much gold at 8,133 tons.