The Chinese central bank (PCOB) may be in possession of more than 30,000k+ tons of gold in reserve. Yet, Western media sources are seemingly in denial and are convinced they only possess 2k tons. If the PCOB is right, this might signal a major global structural shift in favor of gold.
This blog post caught my attention. It builds a pretty compelling case that China (and Russia) have stockpiled far more gold and gold-adjacent assets (e.g. Western mining and exploration companies) than Western media sources seem to care to report on. The World Gold Council is seemingly insistent that the Chinese central bank possesses only 2k tons of gold (6th place globally) when Chinese state media reports having 14k+ and some observers speculate that they have much more.
The thing is, China is incentivized to lie, but in the opposite direction one would assume. If they reveal the true extent of their gold holdings, the Yuan’s exchange rate relative to the USD would suffer, thereby impeding their ability to continue stockpiling gold and reserve assets.
If true, this could be a buy signal for gold and signal a larger structural shift away from USD as a reserve store of value in favor of gold.
Submitted March 25, 2022 at 11:21PM by shored_ruins
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