28 May, 2022

China and its gold reserves

China has become an incredibly advanced economy in the last few years, now rivaled only by the United States. Such a jump was made possible due to two factors – a large population and substantial mineral reserves, the profits from which were very correctly distributed.

So, China has large enough deposits for gold mining. At the same time, the country continues to increase imports of this precious metal. The point is that China not only starts mining gold but also immediately processes it. By the amount of gold produced, the country has been first since 2007.

Of course, official China does not comment on accumulated metal in storage. Still, some experts believe that the country could have got about 10 thousand tons of metal over the past few years. Some data says that China imports 3 times more gold than it produces. Most transactions take place in Hong Kong.

At the same time, China has wholly abandoned the export of gold, and any mining company that mines the metal here must sell it on the domestic market. All stiles, coins, and jewelry in China must remain the state's property or its citizens.

Building up a large stock of gold helps stabilize the economy, especially in times of crisis. It is a kind of capital that is unlikely to fall much in price even with stable inflation.

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