China added to its
In an unabated buying spree, China has continued to expand its gold reserves for a seventh consecutive month, reinforcing the sustained global demand for the precious metal among central banks.
China's central bank added 23 tons of gold to its reserves in June, marking an eighth consecutive increase. The country is stockpiling the safe-haven asset amid economic and geopolitical turmoil. The turn to gold also chips away at the US dollar's dominance, a traditional reserve currency.
Some gold purchasing remains unaccounted for and although it is conjecture, it looks like China and Russia's central banks have been on a buying spree, according to Adrian Ash, director of research at marketplace exchange BullionVault.
The main supplier of gold to China is Switzerland, with sales in 2021 totaling over US$34 billion. Rounding out the top five suppliers to China are Canada, South Africa, Australia, and Hong Kong. Russian gold exports began to fall under Western sanctions in mid-2022.
Australia is estimated to have the world's largest gold reserves, with 9,500 tonnes or 17 per cent of the total world estimated gold reserves of 57,000 tonnes. Geoscience Australia estimates that 60 per cent of Australia's gold reserves are in Western Australia.
Either way, there is financial uncertainty. Precious metals are the counterbalance to that uncertainty. Russia, China, Brazil, Egypt, India, Turkey, Qatar, and many other countries are stockpiling gold to overthrow the Dollar and ensure sovereignty.
Turkey bought 23 tonnes of gold in January, making it the biggest buyer of the precious metal among central banks globally over the period. The country now holds 565 tonnes of gold, the highest level on record, according to data from the World Gold Council.
The United States holds the largest stockpile of gold reserves in the world by a considerable margin at over 8,100 tons. The U.S. government has almost as many reserves as the next three largest gold-holding countries combined (Germany, Italy, and France).
Population figures are from the World Bank and are for 2021. The largest buyer of gold from 2017 to 2022 is, by far, the central bank of Russia (though data for Russia is actually only until the end of 2021.
Australia and Russia hold the largest reserves of gold
Australia and Russia hold a large share of the world's gold mine reserves, accounting for 8,400 metric tons and 6,800 metric tons, respectively.
Gold is often hailed as a hedge against inflation—increasing in value as the purchasing power of the dollar declines. However, government bonds are more secure and have shown to pay higher rates when inflation rises, and Treasury TIPS provide built-in inflation protection.
Well, it turns out “925 China” is a standard marking on jewelry to denote sterling silver jewelry. If you see “925” or “925 China” stamped on what you thought was your gold jewelry, then the jewelry has 92.5% sterling silver content and is merely gold-plated.
Where is All the Gold? The World Gold Council estimates that miners have historically extracted a total of 201,296 tonnes of gold, leaving another 53,000 tonnes left in identified underground reserves.
Gold Reserves in China averaged 1140.48 Tonnes from 2000 until 2023, reaching an all time high of 2068.36 Tonnes in the first quarter of 2023 and a record low of 395.01 Tonnes in the second quarter of 2000.
The gold stored in the U.S. was acquired by West Germany during a period of trade surpluses with the U.S. before 1970. The gold was never repatriated to Germany due to fear of invasion by the Soviet Union.
Some of the veins produce up to one quarter of an ounce of gold per ton of rock. What makes Dahlonega gold so different from other gold found around the world is the purity. Dahlonega has the purest gold in the world, which is 98.7 percent pure.
1. Shop for gold in Hong Kong The reason for this is that despite the common market pricing for gold and other precious metals, Hong Kong offers the lowest prices for gold across the world. This means that you could buy gold coins and jewelry at a lower price than you would in other countries.
Euro Pacific Bank is the most established institution that offers gold-backed debit cards.
Gold Reserves in Russia averaged 1081.91 Tonnes from 2000 until 2023, reaching an all time high of 2326.52 Tonnes in the first quarter of 2023 and a record low of 343.41 Tonnes in the second quarter of 2000.
Over half of Chinese gold production is state-owned – the China National Gold Group Corporation alone accounts for 20%. And China keeps the gold it mines – the export of domestic mine production is not allowed.
There is every reason to expect that the Chinese yuan will replace the U.S. dollar as the world's main reserve and settlement currency as early as the next decade.
As China and Russia develop their currency backed by gold, U.S. investors could see an increase in the price of gold and other precious metals due to increased demand from these countries' economies.