China Suspected of Hoarding Gold to ‘Reduce Flu Addiction’ – Economics Bitcoin News

In the first week of November, the World Gold Council’s (WGC) report covering global gold demand for the last quarter noted that central banks around the world bought nearly 400 tons of gold in the third quarter of 2022. ” and the WGC researchers also found “a significant estimate for unreported purchasing.” The report, published on November 22, now says that the mysterious gold buyer is likely to be China, and further claims that the country has “purchased significant amounts of gold from Russia.”

The mystery buyer of gold in the third quarter is likely to be China, says a market analyst

According to a report published by Japan’s Nikkei news outlet, China is suspected of hoarding gold to “reduce dependence on gold currency.” Nikkei’s report follows a recent World Gold Council (WGC) study that showed large amounts of gold bought by the world’s central banks in the last quarter.

A WGC report at the time further noted an “unaccounted for purchase” and a mystery buyer who acquired a significant amount of precious metals. However, the WGC’s quarterly report did not reveal the identity of the mystery gold buyer.

The Nikkei article suggests that the secret buyer is China, and that the move is intended to reduce China’s dependence on the US dollar. Speaking to a Nikkei reporter, precious metals analyst Koichiro Kamei told the publication that the scale of the mystery buyer’s gold purchases was “unheard of.”

Report: China Suspected of Hoarding Gold to 'Reduce Flu Addiction'
China is believed to be between 1842.60 1948.31 tons of gold, according to statistics recorded by the World Gold Council. March 2022 data shows that China is ranked sixth in the list of countries with the largest gold reserves. According to other reports, China may hoard more gold than has been recorded since 2019.

Market analyst Itsuo Toshima believes that the country bought a large amount of gold from the Russian Federation. Toshima told the Nikkei reporter that “China bought a large amount of gold from Russia.”

This is not the first time China has remained secretive about its gold purchases, as it has not actively reported its gold reserves and purchases since 2019. In addition, the People’s Bank of China surprised the world in 2015 when the public learned that the central bank was hoarding tons of reserves. Secretly gold since 2009.

China’s gold reserve plan is one of many moves aimed at weaning the country’s finances away from the US dollar. In late October, economists discussed how Russia and China could develop a gold-backed currency that could undercut the dollar.

In addition, Russia and BRICS member countries announced plans to create a new international reserve currency in June. Saudi Arabia also wanted to join the BRICS countries at that time.

In late October, Rich Dad Poor Dad author Robert Kiyosaki cited Saudi Arabia’s desire to join BRICS as one of the reasons he believes the US dollar is toast. The Nikkei article also notes that the Chinese government has been “unloading US bonds” and that China has recently been bailing out of billions in US debt.

Market analyst Toshima told Nikkei’s Munemasa Horio that “the People’s Bank of China may have bought some of the more than 2,000 tons of gold held by the Central Bank of the Russian Federation.”

Statistics from the WGC state that the Russian Federation has approximately 2,298.5 metric tons of gold as of January 2022. While China is thought to be the sixth largest country in terms of gold reserves, Russia is the fourth largest in Europe. gold reserves.

Tags in this story

BRICS Countries, BRICS reserve currency, Central Bank of the Russian Federation, Central Banks, Gold-backed currency, international reserve currency, Japan’s Nikkei, Munemasa Horio, Nikkei, Nikkei Asia, PBOC, People’s Bank of China, Russia, Saudi Arabia, US bonds, US debt , USD, USA, WGC report, World Gold Council

What do you think of the report that says China is hoarding gold to reduce its dependence on the US dollar? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is Head of News at News and a fintech journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for News about disruptive protocols emerging today.

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