China’s strategy on gold

08-Aug (ChinaScope) — Qiu Shi, a magazine by the CCP Central Committee, recently published an article discussing China’s strategy on gold. The author emphasized the importance of establishing and implementing a national strategy: (1) China must recognize gold’s strategic value and its position as a wealth reserve tool; (2) Domestic gold mining and manufacturing should be considered as the primary approach in developing China’s gold reserves; (3) The government should actively invest in China’s gold industry and push the development of the domestic gold market.

The author suggested that gold plays a strong role in enhancing social and financial stability. China has been the world’s largest gold producer since the year 2007. The article concluded by calling for a comprehensive national gold strategy to be designed and used to guide China into becoming a stronger country.

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PG View: We’re all well aware that China is already in full-on accumulation mode when it comes to gold. We’ve written on the topic many times over the past several years. But when a Central Committee magazine espouses development of a national strategy on gold, it confirms that their desire to build gold reserves in no short-term whim, but rather a long-term plan that will underpin gold prices for years, if not decades to come.