The People’s Bank of China acquired 30,000 troy ounces of gold in December, extending its gold purchases for 14 consecutive months, according to official figures. China has one of the largest gold reserves, officially holding over 74 million troy ounces of the precious metal.
China strengthens gold purchases, continues purchasing for 14 consecutive months
China continues its gold rush, acquiring even more gold in December.
The People’s Bank of China acquired 30,000 troy ounces of gold in December, increasing reserves to 74.15 million ounces (2,306 tonnes), according to official data released on Wednesday. This is the 14th month that China’s gold reserves have increased, a trend for the central bank.
China’s gold reserves have been consistently increasing since November 2024, when China resumed buying after a short period. During this streak, China acquired approximately 42 tonnes (over 1.35 million ounces) of gold.
Still, gold held by China only accounts for 5% of China’s foreign exchange reserves, and analysts argue that this proportion could increase further as the country seeks to circumvent several factors.
Nevertheless, there are discrepancies between these numbers and actual flows, with reports suggesting that China is secretly adding hundreds of tonnes more than official numbers.
Legendary economist Jim Rickards said in a recent interview that one of the main reasons for the central bank gold rush and the overall price increase in the gold and silver market is the need for diversification from U.S.-related assets such as government bonds that could be held hostage by the U.S. government.
This is consistent with recent efforts to divest from US debt and internationalize the renminbi, including a digital version in this equation.
The current situation in Venezuela could accelerate this process, as geopolitical tensions strengthen the use of gold as a hedge against geopolitical risks, financial instability, and the weaponization of the US dollar.
read more: Jim Rickards’ Explosive Prediction: Gold to $10,000, Silver to $200 in 2026
FAQ
- How much gold did China acquire in December?
Acquired by People’s Bank of China in December 30,000 troy ounces of goldincrease reserves 74.15 million ounces (2,306 tons). - How much does China continue to increase its gold reserves?
China’s gold reserves are increasing 14 consecutive monthsresumes the purchasing streak that began in November 2024. - What percentage of China’s gold reserves account for its foreign exchange reserves?
China’s gold reserves are approximately 5% of foreign exchange reservesAnalysts expect this number to increase as the country diversifies. - According to experts, what are the factors driving China’s gold rush?
Economists cite the need for diversification. US related assets And geopolitical tensions are the main reason for the rush to gold as a hedge.