Global Gold Rush: China Quietly Boosts Reserves, But How Far Behind is it from the U.S.?

Gold prices surged nearly 106% over the past year, while global demand for the precious metal hit record levels in 2025. During this period, the world purchased $552 billion worth of gold, exceeding the entire economy of Pakistan. China has played a key role in this global gold buying spree.

Record Global Gold Demand:
Gold demand rose by 40% in 2025, reaching a record 5,002 tonnes, marking the fourth consecutive year of growth. Since 2021, global demand has increased by 292 tonnes. Measured in U.S. dollars, the demand grew by 45%, with purchases surpassing Pakistan’s expected GDP of $410–417 billion for 2025–26.

Global ETF holdings increased by 801 tonnes, the second-largest annual rise in history, while demand for gold bars and coins reached 1,374 tonnes, the highest in 12 years. Central banks collectively acquired 863 tonnes of gold, marking the fourth-largest annual purchase on record, far exceeding the 2010–2021 average of 473 tonnes.

Which Countries are Hoarding Gold?
Since 2021, central banks in India, China, Turkey, and Poland have significantly increased gold purchases. Following Russia’s invasion of Ukraine, many nations have boosted gold allocations in their forex reserves. Media reports suggest that China is secretly expanding its gold reserves. While officially reporting 27 tonnes purchased last year, experts estimate China’s actual acquisition to be around 270 tonnes. Analysts warn that China’s hoarding hints at preparation for a potential global crisis.

U.S. Still Leads:
Despite China’s aggressive accumulation, the U.S. remains far ahead in gold reserves, holding 8,133 tonnes, with little change over several years. The world’s top ten gold holders are:

1. United States – 8,133 tonnes
2. Germany – 3,350 tonnes
3. Italy – 2,452 tonnes
4. France – 2,437 tonnes
5. Russia – 2,330 tonnes
6. China – 2,304 tonnes
7. Switzerland – 1,040 tonnes
8. India – 880 tonnes
9. Japan – 846 tonnes
10. Turkey – 641 tonnes

China’s stealthy gold accumulation is raising global attention, though it still trails the U.S. significantly. Analysts say such trends could reshape international financial stability and strategic reserves in the coming years.