Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

China’s Gold Hoard Swells

CommoditiesJul 08, 2019 04:51AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. China’s Gold Hoard Swells

(Bloomberg) -- Central banks are going after gold in 2019, boosting holdings as economic growth slows, trade and geopolitical tensions rise, and some authorities seek to diversify their reserves away from the dollar.

The People’s Bank of China said Monday it raised reserves for a seventh month in June, adding 10.3 tons, following the inflow of almost 74 tons in the six months through May. Last week, Poland said it more than doubled its gold assets over this year and last, becoming the top holder in central Europe.

Bullion has rallied to a six-year high in 2019 as investors bet on rate cuts by the Federal Reserve, although robust jobs figures on Friday clouded that view. Gold purchases by central banks are adding to overall demand, with Russian authorities a substantial and sustained buyer of the traditional haven.

“Aside from its attempt to diversify its holdings of dollars, owning more gold reserves is also an important strategy in China’s rise as a superpower,” Howie Lee, an economist at Oversea-Chinese Banking Corp. in Singapore, said in an email. Additions are likely to continue in coming months, according to Lee.

Last year, central banks bought 651.5 tons, 74% up on the previous year, the World Gold Council said in January. Official sector purchases could reach 700 tons this year, assuming the China trend continues and Russia at least matches 2018 volumes of about 275 tons, Citigroup Inc (NYSE:C). said in April.

China’s recent bullion accumulation, as well as that by other central banks, has come against a backdrop of firming prices. Spot bullion traded 0.5% higher at $1,406.90 an ounce on Monday after a 9.1% climb in the second quarter.

China’s Gold Hoard Swells
 

Related Articles

Not gone yet: Merkel to hang on as active caretaker
Not gone yet: Merkel to hang on as active caretaker By Reuters - Sep 16, 2021

By Andreas Rinke BERLIN (Reuters) - After 16 years in power, Chancellor Angela Merkel is not seeking re-election in Germany's Sept. 26 election but she is anything but a lame...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Lloyd McCord
Lloyd McCord Jul 08, 2019 5:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Odd that Bloomberg failed to mention how much gold The US holds, and whether we are adding as well. The pro China / anti US bias with these guys and Reuters is blindingly obvious. I wonder why that is.
Andrew carson
Andrew carson Jul 08, 2019 5:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
A Fort Knox gold audit would be nice. When was the last time that happened if ever?!
Pa Fa
Pa Fa Jul 08, 2019 5:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
yep... not even sure the gold is there anymore..no serious real audit made for decades...
Lloyd McCord
Lloyd McCord Jul 08, 2019 5:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Andrew carson  . That info is probably not available to the public. Last estimate was 8,133.5 tons. More than the 3 next countries combined. I did find an article stating that The US is in fact buying up gold aggressively like other countries are. Interesting stuff.
Richard Broome
Richard Broome Jul 08, 2019 5:26AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Gold will force restructure of the CB's.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email