China accumulates over 100 tonnes of gold in secret purchases

Jan Nieuwenhuijs, a gold market analyst, has reported a significant increase in covert gold purchases by the People’s Bank of China (PBOC).

He estimates that over 100 tonnes of gold were acquired during the fourth quarter of 2024 through unreported imports from London.

Nieuwenhuijs noted discrepancies between China’s recorded gold imports and private sector purchases, suggesting hidden transactions.

For instance, in September, while gold prices in the Shanghai Gold Exchange showed negative premiums, the country imported 95 tonnes of gold.

Nieuwenhuijs deduced that 60 tonnes of these imports, transported in 400-ounce bars from London, were likely added to PBOC’s reserves.

A similar trend was observed in October when gold was trading at a discount in local markets, but imports totaled 95 tonnes.

Nieuwenhuijs linked the 55 tonnes recorded as imports from London, based on Her Majesty’s Revenue & Customs (HMRC) data, to PBOC acquisitions.

In November, although the bank publicly disclosed the purchase of only 5 tonnes, total imports surged to 122 tonnes.

“No doubt the PBOC struck big in the London Bullion Market once again,” Nieuwenhuijs stated.

This accumulation aligns with China’s strategy to increase gold’s relevance in the global financial system.

Nieuwenhuijs described this as a shift from “dollar recycling” to “gold recycling,” reflecting a transition from investing surplus reserves in U.S. dollars to gold.

The shift is partly fueled by concerns over the growing U.S. global debt, which recently surpassed $36 trillion.

Analysts warn that inflation could be used to manage this debt, heightening fears among dollar-holding nations.