Chinese Banks Running out of Gold

Barrick: Gold is Now the Reserve Currency for Central Banks.

Gold's Resurgence: A New Era for Central Bank Reserves

In a recent statement that has sent ripples through the financial world, Barrick Gold CEO Mark Bristow declared that "gold is becoming reserve currency for central banks."

This bold assertion comes amidst a flurry of activity in the precious metals market, with central banks worldwide accelerating their gold purchases at an unprecedented rate.

The numbers are staggering. In 2024 alone, central banks added a whopping 1,045 tons of gold to their reserves, marking the third consecutive year of purchases exceeding 1,000 tons. This trend shows no signs of slowing down, with 69% of surveyed central banks expecting further net purchases in the future.

What's driving this gold rush? The answer lies in a complex web of geopolitical tensions, economic uncertainties, and a growing desire for financial autonomy. The weaponization of the US dollar through sanctions has prompted many countries to seek alternatives, with gold emerging as a safe haven. Its appeal lies in its ability to act as a hedge against currency fluctuations and provide stability in times of crisis.

China and Russia are at the forefront of this shift, actively promoting de-dollarization and exploring alternative reserve currencies. The BRICS nations' project to create a gold-backed currency for trade further underscores this trend.

However, this golden renaissance is not without its challenges. The logistics of moving and storing vast quantities of gold have led to supply shortages and delivery delays in major financial hubs.

Moreover, the US Federal Reserve is talking with US Treasurer Scott Bessent about revaluing gold to over $5,000 per ounce (minimum) to “stop the bleeding on the US books.”

As we navigate this shifting landscape, one thing is clear: gold's resurgence as a central bank reserve asset marks a significant turning point in the global economic order. This trend will reshape the international monetary system.

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Gold is on Fire but let’s not forget Silver is way more on fire than Gold

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Don’t believe me, keep scrolling

Most are not aware of this because our pathetic “media” and Fiat overlords hate SILVER EVEN MORE THAN THEY HATE GOLD

Below are 6 stories we reported on in past week alone, all pointing towards shortages in Gold.

But we all need to remember Silver is much more scarce than Gold. There are very few silver deposits across the Globe right now that are significant (in proper jurisdictions)

As far as functioning mines where silver is not a by product of zinc, lead or copper there may be less than 5.

Also…

greedy industrialists (who short silver because they also sit on bank boards and cherish low factory inputs) devour silver for it’s physical properties such as conductivity, reflectivity, malleability, ductility, thermal properties, anti-corrosion and being antimicrobial.

Recall that most all of the Gold that has ever been mined still exists above ground which is a stark contrast to Silver which doesn’t stay stored but is consumed industrially (When a torpedo with thousands of ounces explodes, you never see that silver again and recycling costs right now are above the spot price)

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I. We first reported on the Bank of England Gold default just recently.

II. Then about 6 days ago we wrote about China’s Shuibei Gold market experiencing significant Gold shortages.

III. Then about 4 days ago we wrote about China’s pilot program with 10 insurance companies who are accumulating Gold to bolster their balance sheets. We first received this lead from Eric Yeung.

IV. Now we are the first US Media to report on South Korean’s Mint unable to produce gold for Korean banks and that it is reportedly hard to source on a retail level as well.

V. All of this happening simultaneously while Central Banks are accumulating gold at break neck speed and breaking records.

VI. Don’t forget that here in there USA there is whispering or rumors that US Treasurer Scott Bessent is considering revaluating US gold inventories to address the US debt crisis. We’ve written extensively about this running all kinds of scenarios. Some seem far fetched but like our colleague Doug Casey often says “Anything is possible”

VII. Now we are reporting that Chinese Banks are Running out of Gold!

Chinese banks are experiencing a gold rush as soaring prices have sparked a buying frenzy among investors. Several major banks, including the Industrial and Commercial Bank of China, Agricultural Bank of China, and China Construction Bank, have reported that many of their gold products are out of stock or in limited supply.

The surge in demand comes as gold prices hit an all-time record of USD2,942.71 per ounce on the London Stock Exchange, marking the eighth record high this year1. This price increase has fueled investors' enthusiasm for the precious metal, traditionally seen as a safe-haven asset.

Physical gold retailers are also feeling the impact. A China Gold store in Shanghai reported selling out of 100g gold bars before the Chinese New Year holiday, with only smaller denominations currently available.

While the gold rush continues, financial experts are urging caution. Wu San from the Bank of China Research Institute warns that risks may accumulate despite short-term price increases, advising investors to consider portfolio diversification. For more conservative investors, Wang Pengbo, a chief financial analyst, recommends gold accumulation plans as a stable investment method to average costs and mitigate risks from price fluctuations.

As the gold market heats up, investors are faced with both opportunities and challenges in this dynamic economic landscape.