China’s Gold Buying Spree: How Central Bank Accumulation Is Redefining Global Currency Markets


:  China’s relentless gold buying is driving de-dollarization, buoying global prices, and shifting the balance of power in currency markets for 2025 and beyond.

#China #GoldReserves #CentralBanks #DeDollarization #GoldMarket #CurrencyTrends #Geopolitics #EmergingMarkets #PreciousMetals #GlobalFinance

 China is driving a powerful shift in the world’s gold markets, with repercussions across global finance, currency stability, and central bank strategy. In August 2025, the People’s Bank of China added 2 tonnes of gold to its reserves, marking the tenth consecutive month of accumulation and boosting holdings to around 2,302 tonnes….now valued at over $253 billion. T

his accumulation is more than a headline: China’s determined gold-buying streak, even as prices soar above $3,500 per ounce, reflects a long-term policy of financial independence and de-dollarization. The world’s second-largest economy is not just reacting to price but steadily accumulating bullion to reinforce its international influence and reduce the vulnerability that comes with excessive U.S. dollar exposure.

Russia is following a parallel path. With 2,333 tonnes of gold worth $217.4 billion as of March 2025, gold now makes up about 34% of Russia’s foreign reserves….an all-time high. Following the Western freeze of its foreign assets, Russia has made gold a geopolitical anchor and is, for the first time, explicitly adding silver alongside its gold and platinum reserves. This move not only diversifies Russia’s portfolio but signals a potential revaluation of silver among central banks globally.

Emerging economies are not far behind. Central banks across developing markets collectively are leading a new wave of gold purchases. The strategy is clear: hedge against sanctions and currency volatility, assert monetary sovereignty, and reduce reliance on the U.S. dollar. Expectations are that emerging-market central banks will acquire over 900 tonnes in 2025 alone, signaling a systemic pivot in global reserve management that accelerates a trend begun in 2022.

China’s impact extends far beyond physical reserves. As its gold holdings rise to record levels…now representing nearly 8% of total reserves, China’s gold accumulation is sending clear signals to global currency markets.

First, it supports the internationalization of the yuan. About 32% of China’s trade in the second quarter of 2025 was settled in yuan, up sharply thanks to the perceived safety that gold-backed reserves bring, encouraging global partners to trust China’s currency over the dollar.

Second, China’s move amplifies global de-dollarization. Gold now makes up a larger share of China’s reserves as U.S. Treasury holdings fall, down about 18% from their peak, and the BRICS group begins exploring gold-linked payment systems as alternatives in cross-border trade.

Third, China’s predictable, large-scale gold buying props up global gold prices and lends stability amid market volatility, with central banks now responsible for roughly a quarter of total annual gold demand.

Analysts emphasize that this “physically supported stair-step” method replaces speculative Western price-setting with a stable Asian-led anchor, reducing the risk of sharp pullbacks and reinforcing ratcheting price rallies.

Finally, China and Russia remain at the forefront of this transition, with their gold, and now silver, strategies prompting central banks and investors worldwide to reconsider bullion’s strategic value.

The resulting currency-market consequences are clear: pressure on the dollar’s supremacy, a rising role for gold and potentially silver in global reserves, and the emergence of a more multipolar monetary system where hard assets regain center stage.

SP

Comment below, what’s your take? Like and repost.

For information only and not a recommendation to buy or sell shares.

Mining News: www.minestockers.com (Disclosure-the writer is a shareholder of minestockers.com)

Comments

Post a Comment

Popular posts from this blog

Are We Witnessing the Seeds of Revolution?

Image
 Historical and economic lens on today’s rising inequality, taxation, and trade tensions—examining whether current conditions echo the unrest that sparked revolutions of the past.   Tariffs, Tax Policy, and America’s Growing Divide As 2025 unfolds, a cascade of economic changes is reshaping the American landscape, raising questions about the nation’s social stability and the potential for upheaval. With new tariffs driving up consumer prices and tax policies favoring the wealthy, the United States is experiencing a widening divide between the “haves” and “have-nots.” Are these the seeds of revolution, or simply the latest chapter in the country’s long history of economic cycles? Tariffs and Consumer Prices: The New Tax on Households President Trump’s renewed tariffs in 2025 have quickly made their presence felt in American wallets. According to the Yale Budget Lab , the average U.S. household is experiencing an effective income loss of around $2,000 in 2025 due to the...
Read more

CARBON CAPTURE & STORAGE (CCS)

Image
 Climate change remains a defining challenge of our time, and mitigating its effects requires innovative technology and considerable effort. Carbon capture and storage appears as a promising means to reduce greenhouse gas emissions significantly. Let's look at the overall function and potential of carbon capture technology, along with introducing two landmark projects that are set as new milestones in this crucial field. Carbon Capture and Storage (CCS), as the name suggests, is a technology that seizes carbon dioxide (CO2) emissions from industrial and power generation processes. This method prevents emissions from entering the atmosphere, thus contributing to the fight against climate change. Once captured, the CO2 can either be permanently sequestered underground in geological formations such as depleted oil and gas reservoirs, saline formations and/or unmineable coal seams. Also there is the option of converting CO2 into a range of products such as methanol, which could fu...
Read more

SOME KEY ASPECTS OF TRUMP’s BIG BILL

Image
Explore the downsides of Trump’s Big Bill: Medicaid & food aid cuts, rising deficits, & tax breaks favoring the rich. Learn how it impacts you! The Congressional Budget Office (CBO) estimates the bill will add approximately $3.3 trillion to the federal deficit over the next decade, with some analyses suggesting up to $3.9 trillion   The legislation includes cuts to the Supplemental Nutrition Assistance Program (SNAP) by introducing stricter eligibility and work requirements, potentially reducing access to food assistance for millions of low-income Americans.   According to the CBO, the wealthiest 10% of households would see a 2.3% increase in after-tax income, while the poorest 10% could face a 3.9% decrease due to reduced benefits from programs like Medicaid and SNAP. This makes the bill one of the most regressive pieces of legislation in decades, exacerbating income inequality   A provision in the bill conditions federal broadband funding on states refra...
Read more