Saturday, May 31, 2025

Latest

The De-Dollarization Frenzy: China Covertly Buying Gold to Reduce US Dollar Exposure

The West’s sanctions against Russia are backfiring, particularly for the US dollar, which is slowly but surely losing its grip on global dominance.

After witnessing western nations unilaterally freeze Russia’s foreign assets in response to Moscow’s military operation in Ukraine, central banks have been boosting their gold reserves so the same thing doesn’t happen to them should Washington suddenly turn unfriendly. Over $300 billion of Russian foreign reserves— not including assets owned by businesses and individuals— were frozen by the Biden administration and other western allies.

At the same time, data from the World Gold Council revealed that major regulators quadrupled their gold purchases in the third quarter 2022 to 399.3 tons, marking a stark increase from the 186 tons bought during the second quarter, and the 87.7 tons purchased in the first three months of the year. In fact, the year-to-date total exceeds any such period since 1967! Most of the gold was purchased by the central banks of Turkey, Uzbekistan, and India, each reportedly buying 31.2 tons, 26.1 tons and 17.5 tons, respectively. However, it remains unclear which countries purchased the remaining total reported by the industry group.

Indeed, such an unaccounted-for portion of “this magnitude is unheard of,” said precious-metals analyst Koichiro Kamei, as cited by the World Gold Council. Another market analyst, Itsuo Toshima, said “China likely bought a substantial amount of gold from Russia,” which is normal behaviour for the People’s Bank of China. The communist country stopped reporting data on its gold purchases in 2019, after disclosing a purchase of 600 tons sometime between 2009 and 2015.

“Anti-Western countries are eager to accumulate gold holdings on hand,” said economist Emin Yurumazu, as cited by Asia Nikkei. The gold shopping spree comes as central banks around the world ramp up efforts to secure their assets and cut back their exposure to the US dollar. China has been at the forefront of the de-dollarization frenzy, dumping $121.2 billion worth of US bonds between March and October.

Information for this briefing was found via Asia Nikkei, the World Gold Council, and the sources and companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

How To Profit From $3300 Gold? An Inside Look At A Massive 300,000 Oz Project | Martino De Ciccio

We’re At The Start of a Great Silver Boom | Ross McElroy & Andy Bowering – Apollo Silver Corp

Equinox Gold Q1 Earnings: When Everything Goes Wrong

Recommended

ESGold Begins Concentration Tests Ahead Of First Production

Sterling Metals Hits 0.21% Copper Over 482.8 Metres In First Drilling At Soo Copper project

Related News

London Metal Exchange To Cease Trading In Gold, Silver

The London Metal Exchange is exiting the precious metals business. The exchange today indicated that...

Friday, April 22, 2022, 02:30:00 PM

Cathie Wood Begins Liquidating Chinese Stocks Following Tech Crackdown

Ark Invest CEO Cathie Wood has allegedly begun cutting back her fund’s exposure to China,...

Friday, September 10, 2021, 02:37:00 PM

i-80 Gold Reports Revenue Of $10.3 Million For Q2 2021

i-80 GOLD CORP. (TSX: IAU) late last night posted its financial results for the second...

Wednesday, August 11, 2021, 08:37:35 AM

Market Movers Has The Straight Goods On Turmalina Metals Corp

Turmalina Metals Corp. (TSXV: TBX) did six million shares worth of volume this past Friday,...

Tuesday, September 1, 2020, 12:53:00 PM

Gold Prices Accelerate as Fears Over Global Inflation Mount

Gold prices are once again on the rise, as investors around the globe prepare for...

Sunday, October 24, 2021, 04:18:00 PM