New Delhi: Gold prices have surged sharply this year, driven in large part by central banks around the world stockpiling the precious metal. Among them, China has emerged as a major player—but with a twist. Official figures underreport the extent of Beijing’s purchases, suggesting the nation is quietly acquiring far more gold than it admits.
According to estimates, China has purchased around 240 tons of gold so far this year, while officially reporting only 24 tons. The country’s official gold reserves stand at 2,304 tons, but analysts believe the real figure is several times higher.
A report by Goldman Sachs revealed that in September alone, China bought 15 tons of gold, even though the official number was just 1.5 tons—ten times more than disclosed. Similarly, in April, China purchased 27 tons, nearly 13 times the officially reported figure. By October, official records show only 0.9 tons were added, bringing the total to 2,304.5 tons. Globally, only four countries have larger gold reserves than China.
Why is China hoarding gold?
China is positioning itself to challenge the United States as the world’s leading economy. Currently, the U.S. holds 8,133 tons of gold, forming 78% of its total reserves. Germany follows with 3,350 tons, Italy with 2,452 tons, France with 2,437 tons, and Russia with 2,330 tons. China ranks next.
China’s total foreign reserves are $3.34 trillion, but gold makes up just 7%, well below the global average of 22%. Back in 2009, Hou Huimin, then Vice-General Secretary of the China Gold Association, suggested that the nation should aim for 5,000 tons of gold reserves. Experts now argue that for China to become the world’s largest economy in the coming decades, it may need more than 8,000 tons of gold—second only to the United States.
This secretive accumulation reflects China’s long-term strategy to strengthen financial security and global economic influence while quietly driving up global gold prices.
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