... it was on 7 December 2022, on the first day of Chinese premier Xi Jinping’s multiday visit to Saudi Arabia to strengthen ties in areas such as energy and investment, that back in China, SAFE was simultaneously announcing that the Chinese central bank had begun ‘buying’ gold again.
So you can see that none of this was coincidental. The symbolic intersection of the Chinese Yuan, Middle Eastern energy, and gold, in a visit between two gold loving nations designed to boost multipolarism in the region at the expense of US dominance is clear to see. This was China again saying “I’ll see your hand and I’ll raise it with some gold”. But this time there is a lot more at stake than joining the SDR or negotiating a trade war. This time China and Saudi are sowing the seeds of a future PetroYuan and reminding the world that it could be linked to gold.
The reality is that China is probably accumulating gold all the time, and has never stopped accumulating, both on the international market as well as from undisclosed domestic production. While these monthly ‘purchases’ could be fresh buying internationally, they could just as easily be some of the Chinese state’s existing gold holdings being reclassified as PBoC gold.
... the monthly China gold ‘purchases’ which we will probably see in the coming months will do just enough to keep China’s gold reserves on everyones’ radars, as a portion of the world shifts towards a multipolar monetary future.
With the Chinese central bank recommencing monthly additions to its monetary gold reserves, expect this trend to continue well into 2023.