Chronicle - Nov 19, 2023

Got Gold?

Photo by Jingming Pan on Unsplash

While China's gold reserves remain modest, there is a consistent and increasing trend in their accumulation. Notably, there has been a recent acceleration in the pace of this accumulation.

China's gold reserve is relatively modest, standing at 2,191 metric tons, or approximately 3.9% of its foreign exchange reserves, as per the World Gold Council's September 2023 data. In contrast, the United States holds a substantial 8,133 metric tons, constituting 68% of its foreign exchange reserves.

In the last two decades, China has steadily increased its gold reserves from 395 tonnes in the early 2000s to a five-fold rise. Recently, there has been a notable acceleration, with the People’s Bank of China adding 243 tonnes in the past 11 months through monthly purchases.