With Subpar Weapons but War Aspirations, China Begins Frantic Gold Accumulation

With Subpar Weapons but War Aspirations, China Begins Frantic Gold Accumulation

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On December 4, 2023, the international gold price reached a new high, with the price per ounce hitting 2,150 US dollars. The Chinese Communist Party's (CCP) gold purchasing behaviour is seen as a key factor driving this price increase. Some analysts speculate that this large-scale gold accumulation might be for military preparations, particularly for potential military action against Taiwan. There are even predictions that by 2024, the Renminbi might challenge the international market backed by a gold standard.
According to the World Gold Council, China has been purchasing gold on a large scale over the past 12 months. Singaporean gold traders have revealed that the Chinese government is spending at least 1 billion US dollars monthly on gold purchases. By the end of November 2023, the People's Bank of China's gold reserves stood at 2,226 tons. Swiss gold analysts even believe that China's actual gold reserves might reach 4,000 tons, as domestically mined gold is not included in official figures.