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Why has China been buying so much cheap gold bullion?

It has been reported that the People's Bank of China (PBC) has increased its gold bullion holdings for two consecutive months, with an addition of 30 tons in December and 32 tons in November. Although China now officially reports holding 2,0

10 tons of gold, many analysts speculate that the actual figure is significantly higher since China rarely discloses its gold purchases. It is a standard practice among central banks to purchase gold anonymously.

During the third quarter of last year, central banks collectively purchased a record 400 tons of gold, increasing their total reported gold holdings to a record 36,745.8 tons, the highest in history. Most of these purchases were made anonymously, with analysts suspecting Russia to be one of the largest buyers due to its continued purchase of significant amounts of cheap gold bullion for years.

There have been speculations that China may be purchasing gold to prepare for war, especially since Chinese President Xi Jinping reportedly instructed the People's Liberation Army to focus on war preparation in November. While some U.S. military personnel have confirmed China's preparations to annex Taiwan, no timeframe has been given.

China's behavior has been compared to Russia's actions before the invasion of Ukraine. Russia had de-dollarized its economy and stockpiled gold and Chinese Yuan before the invasion. China has been closely observing the sanctions and global reactions to Russia's invasion and has been negotiating trade agreements outside the Dollar while stockpiling gold. This has led some to believe that China may be planning an attack against Taiwan sooner than anticipated.

The BRICS countries, including Russia and China, are committed to overthrowing the Dollar's international hegemony and creating a commodity-backed currency for international trade. After Russia invaded Crimea in 2014, the U.S. heavily sanctioned Russia, and since then, Russia has been de-dollarizing its economy and increasing its gold reserves. China, India, Egypt, and Brazil were among the most significant third-quarter gold purchasers, indicating their move towards sovereignty from the Dollar.

Given the current financial uncertainty, many countries are stockpiling gold as a counterbalance. This has led to record purchases of gold by central banks and governments to protect themselves from the dangers of the Dollar. If you are concerned about protecting your sovereignty, you may want to consider investing in gold.

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