China’s gold demand quantified
China has accumulated huge quantities of gold. Household savers are sitting on savings of $30 trillion equivalent and have a further $5 trillion every year to invest.
In conclusion, there is a growing likelihood that Chinese public demand will accelerate on the back of geopolitical factors and the debt traps being sprung on G7 governments.
This article delves into China’s gold accumulation policies, initially by the State between 1983—2002, and then by her citizenry. The amounts accumulated in the last 43 years are truly staggering. And now, as a rising bullion price has begun to reflect an acceleration in the weakening of the fiat dollar and other G7 currency values, a shift in China’s household savings demand from bank deposits into gold accumulation accounts will create a crisis driving gold (and silver) prices substantially higher.
This development will in itself accelerate the decline of the dollar-based fiat currency system and bring forward its final collapse.
The background
In 1983, the Peoples Bank of China was appointed with total responsibility for acquiring and managing the nation’s gold reserves. It is important to note that the PBOC’s own gold reserves do not capture the extent of the PBOC’s accumulation, confirmed in the original Regulations. Article 3 in English translation states:
