ExplainerIs China stockpiling gold? 1 million ounces added in November amid Beijing’s asset diversification efforts
- China increased its gold reserves for the first time since September 2019 in November by 1.03 million ounces to lift its holdings to 63.67 million ounces
- Increased purchases of gold are expected amid Beijing’s diversification efforts and international financial market volatility
How big are China’s gold reserves?
China increased its gold reserves by 1.03 million ounces in November, according to data released by the State Administration of Foreign Exchange at the start of December.
The first monthly increase since September 2019 lifted China’s gold reserves from 62.64 million ounces at the end of October to 63.67 million ounces, worth around US$112 billion.
China holds the world’s sixth largest gold reserves behind the United States, Germany, Italy, France and Russia.
Actual gold reserves, though, could be larger than official figures due to proxy holdings by state-owned miners, sovereign wealth funds and other government investment vehicles.
Why did China increase its gold reserves?
China has added to its gold reserves during six windows since 1978, government data showed, with increases in recent years attributed to Beijing’s asset diversification endeavours.
Gold is often a preferred choice when global markets become increasingly volatile and the threat of a worldwide economic recession looms.