PBoC and Royal Bank of India have highest-ever gold holdings
The People's Bank of China (PBoC) and the Reserve Bank of India (RBI) have reached record-high gold holdings as central banks worldwide seek to diversify their foreign exchange reserves away from the US dollar, according to recent data from the World Gold Council (WGC).China's central bank reported gold reserves of 2,264 tonnes at the end of May, marking the first month since November 2022 without a new gold purchase announcement.
This precious metal now constitutes 4.93% of China's total exchange reserves, the highest level ever recorded.
The trend of central banks accumulating gold has been particularly strong in recent years. In 2023, central banks globally added 1,037 tonnes of gold to their portfolios, the second-highest amount on record, following the 1,082 tonnes added in 2022.
This sustained buying spree has contributed significantly to gold's recent price surges, with the metal setting numerous record highs in 2024.
China has been at the forefront of this trend, increasing its gold holdings by 181 tonnes since the start of 2023, bringing its total to 2,192 tonnes (equivalent to 4% of total reserves) by the third quarter.
The People's Bank of China has emerged as the largest buyer globally, adding 78 tonnes during the third quarter alone.
Other significant buyers in Asia include the Monetary Authority of Singapore (MAS), which purchased about 75 tonnes in the first nine months of 2023, and the central banks of Turkey, India and of Philippines.
Experts attribute this surge in central bank gold purchases to several factors, including the need to diversify reserves away from US assets, concerns about geopolitical tensions, and efforts to improve the credibility of domestic currencies.
The World Gold Council's 2024 Central Bank Gold Reserves survey indicates that 29% of respondents plan to increase their gold holdings in the next 12 months, the highest level since the survey's inception.
This trend of central banks boosting their gold reserves is expected to continue, reflecting the ongoing value that these institutions place on gold as a safe-haven asset in increasingly uncertain economic times
No one Really Knows
How much Gold Anyone has right?
A comparison of gold holdings between the United States, China, and India: (good luck navigating this rabbit hole)
United States:
The United States has the largest gold reserves in the world. While the exact figure is not provided in the search results, it's widely known that the U.S. holds approximately 8,133.5 metric tons of gold.
China:
China's official gold reserves have reached 2,264 tonnes as of the end of May 2024, according to data from the World Gold Council (WGC). This represents 4.93% of China's total foreign exchange reserves, the highest level ever recorded for China.However, some analysts suggest China's actual gold holdings could be much higher.
One estimate by analyst Jan Nieuwenhuijs suggests the People's Bank of China may hold over 5,220 tons of gold. Even more speculative estimates suggest China's total gold holdings (including private sector) could be as high as 29,000 tons.
India:
It’s difficult to obtain specific figures for India's gold holdings. However, it's mentioned that the Reserve Bank of India purchased 9 tonnes in the third quarter of 2023 and a total of 19 tonnes in that year.
Comparison:
The U.S. “reports” to hold more gold than China's officially reported figures.
China's gold reserves have been growing rapidly, with 181 tonnes added since the start of 2023.
It's important to note that there's considerable uncertainty around China's actual gold holdings and lots of doubts surrounding Gold being over-reported by USA (there have been no audits)