China is on a big gold-buying spree
“China’s on a bullion-buying spree. The world’s second-largest economy expanded its gold reserves for the fourth straight month, adding to optimism that central banks globally will continue to build holdings. The People’s Bank of China raised reserves to 60.62 million ounces in March from 60.26 million a month earlier, according to data on its website. In tonnage terms, last month’s inflow was 11.2 tons, following the addition of 9.95 tons in February, 11.8 tons in January and 9.95 tons in December.”
USAGOLD note: Keep in mind too that China, the world’s leading mine producer, keeps most its domestic gold production (roughly 450 tonnes per year) within its borders. Though that production is not officially claimed as part of national reserves, many gold market analysts believe it is ending up in the coffers of either the national government or the central bank. Last year central banks purchased a record 650 tonnes of gold according to the World Gold Council. Add China’s production and that total vaults to 1100 tonnes – 70% higher than the WGC’s widely-touted number and a little over one-third of global mine supply.
Reprint from 4-7-2019