Fun

Report: China Suspected of Stockpiling Gold to ‘Cut Greenback Dependence’

News Feed - 2022-11-23 06:11:46

Report: China Suspected of Stockpiling Gold to ‘Cut Greenback Dependence’


During the first week of November, the World Gold Council’s (WGC) report that covered last quarter’s global gold demand noted that central banks worldwide purchased close to 400 tons of gold in Q3 2022. The study highlighted that it was the “most on record,” and the WGC researchers also spotted a “substantial estimate for unreported buying.” A report published on Nov. 22 now says the mystery gold buyer is likely China, and it further alleged that the country “bought a substantial amount of gold from Russia.” The Third Quarter’s Mystery Gold Buyer Is Likely China, Market Analyst Says


According to a report published by Japan’s Nikkei news outlet, China is suspected of stockpiling gold to “cut greenback dependence.” Nikkei’s report follows the recent study published by the World Gold Council (WGC) that shows a large amount of gold purchased by the world’s central banks last quarter.


At the time, the WGC report further noted, “unreported buying” and a mystery buyer that acquired substantial amounts of the precious metal. However, the WGC’s quarterly report does not disclose the mystery gold buyer’s identity.


Nikkei’s article suggests the mystery buyer is thought to be China, and the move is meant to cut China’s dependence away from the U.S. dollar. Speaking with Nikkei’s reporter, the precious metals analyst, Koichiro Kamei, told the publication that the magnitude of the mystery buyer’s gold purchases is “unheard of.” It is believed China holds between 1842.60 to 1948.31 tons of gold, according to stats recorded by the World Gold Council. March 2022 data indicates that China was ranked sixth in terms of countries with the most gold reserves. Other reports believe China may be hoarding a lot more gold than what’s been recorded since 2019.


The market analyst, Itsuo Toshima, believes the country likely purchased a large sum of gold from the Russian Federation. “China likely bought a substantial amount of gold from Russia,” Toshima told the Nikkei reporter.


It’s not the first time China has been secretive about gold purchases as China has not been actively reporting gold holdings and purchases since 2019. Furthermore, the People’s Bank of China surprised the globe in 2015, as the public found out the central bank was stockpiling tons of gold secretly since 2009.


China’s gold stockpiling scheme is one of the many moves that possibly aim to distance the country’s financials from the U.S. dollar. At the end of October, economists discussed how Russia and China could potentially develop a gold-backed currency that could undermine the greenback.


Furthermore, Russia and members of the BRICS countries revealed plans in June to create a new international reserve currency. Saudi Arabia requested to join the BRICS nations at that time as well.


At the end of October, Rich Dad Poor Dad author, Robert Kiyosaki, cited Saudi Arabia’s request to join BRICS as one reason why he believes the U.S. dollar is toast. Nikkei’s article also notes that the Chinese government has been “unloading U.S. bonds” and in recent times China has been getting rid of billions in U.S. debt.


The market analyst Toshima told the Nikkei staff writer, Munemasa Horio, that the “People’s Bank of China likely bought a portion of the Central Bank of the Russian Federation’s gold holdings of over 2,000 tonnes.”


WGC statistics say the Russian Federation held around 2,298.5 metric tons of gold as of January 2022. While China is thought to be the sixth largest nation for the amount of gold it has on reserve, Russia is ostensibly the fourth-largest nation in Europe in terms of gold reserves. Tags in this story BRICS Nations, BRICS reserve currency, Central Bank of the Russian Federation, Central Banks, Gold-backed currency, international reserve currency, Japan"s Nikkei, Munemasa Horio, Nikkei, Nikkei Asia, PBOC, People"s Bank of China, Russia, Saudi Arabia, U.S. bonds, U.S. debt, U.S. dollar, United States, WGC report, World Gold Council


What do you think about the report that says China is stockpiling gold to cut dependency from the U.S. dollar? Let us know what you think about this subject in the comments section below. Jamie Redman


Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Amazon Founder Jeff Bezos Advises What Consumers and Businesses Should Do as Recession Looms ECONOMICS | 2 days ago Nigeria"s Rising Inflation and Foreign Exchange Shortages Fueling Devaluation Speculation — IMF Mission ECONOMICS | 3 days ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleOnchain Research Shows FTX’s Falling BTC, ETH, Stablecoin Balances ‘Suggest Cracks Had Formed as Far Back as June’ Next articleCoinbase CEO Says Company Holds 2 Million Bitcoin, Reminds People Firm’s ‘Financials Are Public’ Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItOman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework


Real estate tokenization is set to be incorporated into Oman Capital Markets Authority (OCMA)"s virtual asset regulatory framework. According to an advisor with the authority, the tokenizing of real estate will open investment opportunities for local and foreign investors. Real ... read more.Goldman Predicts US Recession Odds at 35% in 2 Years, John Mauldin Wouldn"t Be Surprised if Stocks Fell 40% Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms Survey: Adoption in Argentina Grows, With 12 out of 100 Adults Having Invested in Crypto

News Feed

Is Bitcoin Headed For A Meltdown? Veteran Trader Sees 75% Crash Ahead
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
India Freezes Crypto Exchange Wazirx’s Bank Assets — Binance Claims Acquisition of Wazirx Was ‘Never Completed’
India Freezes Crypto Exchange Wazirx"s Bank Assets — Binance Claims Acquisition of Wazirx Was "Never Completed" A major Indian cryptocurrency exchange, Wazirx, has had its bank a
Tether has ‘redistributed’ $108.8M in USDT from illicit activity since 2014
Ciaran Lyons7 hours agoTether has ‘redistributed’ $108.8M in USDT from illicit activity since 2014The most recent seizure of $5 million USDT from pig-butchering scams marks a “significant victory” in the ongoing
Crypto Market Remains Greedy Despite Bitcoin Price Crash To $94,000, Is A Recovery Coming?
Este artículo también está disponible en español. You could argue that the cryptocurrency market maintains its confidence despite the Bitcoin price experiencing a signifi
Propelled by crypto inflows, US ETF assets hit record $10 trillion
Alex O’Donnell6 hours agoPropelled by crypto inflows, US ETF assets hit record $10 trillionCryptocurrency ETFs saw inflows exceeding $20 billion in 2024, according to Morningstar.713 Total views9 Total sharesListen to
Russia to Ban Banks From Using Messengers Like Telegram to Contact Customers
Russia to Ban Banks From Using Messengers Like Telegram to Contact Customers Financial institutions in Russia will not be able to communicate with clients through instant messenger
Report: Korean Regulator Approves Issuance and Distribution of Security Tokens
Report: Korean Regulator Approves Issuance and Distribution of Security Tokens South Korea’s Financial Services Commission (FSC) has reportedly said that Korean investors wil
Interest in Bitcoin and Ethereum Slides According to Google Trends Data, NFT Queries Skyrocket
Interest in Bitcoin and Ethereum Slides According to Google Trends Data, NFT Queries Skyrocket While bitcoin, non-fungible token (NFT) assets, ethereum, and cryptocurrencies had an
NASDAQ-Listed HIVE Blockchain to Expand Data Center in New Brunswick, Canada With 40 Megawatts Capacity
NASDAQ-Listed HIVE Blockchain to Expand Data Center in New Brunswick, Canada With 40 Megawatts Capacity sponsored HIVE Blockchain is set to expand its data center campus in New Brun
Tom Blackstone1 hour agoImmutable zkEVM begins testnet phase with 12 Web3 games in developmentThe Web3 gaming company announced that its fully Ethereum-compatible network is now available for public testing.152 Total vie
FIFA Unveils Range of New Web 3․0 Games Ahead of FIFA World Cup Qatar 2022™
FIFA Unveils Range of New Web 3․0 Games Ahead of FIFA World Cup Qatar 2022™ press release PRESS RELEASE.FIFA has unveiled a portfolio of new future-focussed web 3.0 games to ent
Bitcoin’s window to reach $100K by end of Q4 'looks very tight'
Ciaran Lyons11 hours agoBitcoin’s window to reach $100K by end of Q4 "looks very tight"Bitcoin reaching $75,000 to $80,000 by Christmas seems plausible, but hitting six figures will require everything to “go right fr