In the first half of 2025, China imported over 900 metric tons of gold, according to customs data—a staggering figure even by its usual standards. But this isn't just about central bank diversification. It’s part of a larger, global strategy to reshape monetary power.
At the same time, BRICS nations (Brazil, Russia, India, China, South Africa) have advanced their plan to launch a commodity-backed settlement currency—with gold at its core.
Why Is China Hoarding Gold?
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To de-dollarize international reserves and trade settlements
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To backstop the yuan as a global settlement option
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To support BRICS+ financial initiatives that challenge U.S. hegemony
What This Means for Investors:
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Gold is Being Weaponized—Peacefully:
China isn’t just buying gold for diversification. It’s building a monetary alternative to the U.S. dollar. -
Global Demand is Rising, Not Falling:
While U.S. investors debate gold's role, sovereign nations are hoarding it. That long-term demand floor will support prices for years. -
The Dollar’s Role is Eroding:
If BRICS succeeds in launching a gold-linked trade mechanism, the dollar’s reserve status could be weakened. That’s a generational shift—and gold will likely be the biggest beneficiary.
The Historical Parallel:
The last time a major reserve shift occurred—when the pound ceded global status to the dollar—gold surged. We may be entering a similar phase of monetary realignment.
