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China as secretly Purchased and Hoarded a Quantity of Gold up to 2,215 tons, more than twice that of the United States, according to an international financial expert
Dominic Frisby, a gold analyst and founder of The Flying Frisby magazine specializing in metals, energy, and market commentary, recently stated that China’s officially disclosed gold reserves significantly differ from the actual figures.
He claimed that China is quietly acquiring a large amount of gold, and the country’s gold holdings are much larger than reported, surpassing those of the United States. Frisby suggested that China may consider using gold to support its domestic currency.
The latest figures released by the Chinese government in October indicate that the country’s central bank continued to purchase gold, marking the 12th consecutive month of buying the precious metal. The World Gold Council (WGC) reported that the most recent purchase was about 23 tons, bringing China’s total gold holdings to 2,215 tons. Overall, China’s government has recently become one of the largest gold reserves holders, and the central bank’s gold purchases seem to set a new record high this year.
Dominic Frisby told Kitco News that although China has become a leading nation in accumulating Gold, the actual figures could be much higher
“They announce this information gently; China has very ambitious goals”, Frisby said. “Perhaps I am the one who has delved into this issue more deeply than anyone else, and I will let people know why the amount of gold that China holds could be 10 times more than what they say, and the calculation for that is quite simple”.
China is the world’s largest producer and importer of gold, but Frisby noted that the country’s philosophy is to “not shine too brightly.”
In this century, China has produced around 7,000 tons of gold. Frisby explained, “Over 50% of gold mining activities in China are state-owned, and China does not export any ounces of gold it produces. Therefore, all the gold mined in China stays in China.”
Regarding imports, it is currently unclear how much gold China has imported through Switzerland, Dubai, or London, but Frisby believes the market could provide some estimates. “We know that a large amount of gold entering China goes through the Shanghai Gold Exchange. We also know that since the beginning of this century, the Shanghai Gold Exchange has withdrawn 22,000 tons of gold.”
Based on this, Frisby estimates that China holds at least 33,000 tons of gold, half of which may be state-owned.
He said, “16,500 tons is double that of the United States. If political tensions between China and the United States escalate, China will turn gold into a weapon.” He also mentioned that China may consider using gold to support its domestic currency.
Looking at the future market prospects, he believes that the price of gold could reach $3,000 per ounce by 2024, and Bitcoin will double, reaching $100,000.
The global gold market surpassed the $2,000 per ounce mark at the end of October, and Bitcoin reached $38,000 last week.
Frisby appears optimistic about both assets in the coming year, noting that gold is showing a tendency to rise in price. He said, “Gold seems ready to rise, with prices possibly reaching $2,700 per ounce next year and even reaching $3,000.
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