The growth of China's gold reserves is breaking records


According to some analysts, Chinese authorities are showing a growing appetite for increasing the country's gold reserves. Last week, the central bank of China announced its purchase of a record amount of the precious metal. Analysts are certain that this is not the limit, and that China will continue to increase its reserves of the yellow metal.

Last week, the financial authorities of China released a statement, which confirmed the growth of the country's gold reserves by 14.9 tons, to a mark of more than 1900 tons in April of this year. According to analysts, the gold reserves of China have been growing for five months in a row. Since December 2018, the Chinese regulator has increased their volume by 58 tons. Note that from October 2016 to November last year, Chinese authorities did not disclose information about their gold reserves. Analysts believe that this indicates the absence of official purchases.

Analysts of the precious metals market are confident that the real volume of gold reserves in China is much more than official sources say. According to the World Gold Council, at the end of 2018, 1,506 tons of ferrous metal were imported into the country, and 17 tons were exported, while the precious metal production was 404 tons. Some experts have suggested that the Chinese authorities are not telling the whole truth, so as not to cause a rise in world prices for the yellow metal.

At present, China is also the main holder of US state bonds. In 2010, China's share in US government bonds was 14%. At the moment, it does not exceed 5%, although experts are confident that the trend to diversify international reserves will continue with the help of the yellow metal.

The material has been provided by InstaForex Company -