Another month, another round of gold buying from China

Tue Oct 07 2025

And all of this is in terms of what is being reported. Or should I say what China wants to report. Anyway, that kind of talk warrants a separate discourse and isn't the point of this post.

As China continues to step up its gold reserves, it has coincided with the stirring rally in the precious metal since 2023. And they're not the only major central bank to do so, but certainly the one that arguably stands out the most. The move here to increase gold holdings underscores a broader trend in economies trying to diversify from the US dollar, however miniscule the effort may be.

China's state reserves has roughly 2,300 tons of gold as of the last reporting. In the past, the number floated around is that Beijing wants to push towards 5,000 tons in terms of holdings. That is a number that will make them the second largest official holder of gold, behind just the US.

For some context, China's official gold holdings as a percentage of their total reserves remain very, very small. It is roughly estimated at 7%. That as compared to the likes of the US and Germany at 78%, with Italy and France at 75%. Even Russia's gold holdings as a percentage of their total reserves is roughly 37%.

If you take that into consideration, there's reason for China to not only keep increasing but to even step up its gold purchases as its own economy continues to grow larger.

In the big picture, they are still keeping very tight-lipped on their plans with regards to gold. But for now at least, the trend remains clear.

Source: https://investinglive.com