GOLD / SILVER / PLATINUM / GEMS LEXICON

The change of China's gold reserve from the year 2000 to 2022.

The gold reserves of a country can be an important indicator of its economic stability and financial power. China, as one of the world's largest economies, has been steadily increasing its gold reserves over the past two decades.

The change of China's gold reserve from the year 2000 to 2022.

In the year 2000, China's official gold reserves stood at around 394 tonnes, which represented only a small fraction of the country's total foreign exchange reserves. At the time, China's focus was on accumulating foreign currency reserves to support its economic growth, and gold was not a priority.

However, in the years that followed, China's attitude towards gold changed. In 2002, the Chinese government authorized its citizens to own and trade gold for the first time in decades. This move was seen as a signal that China was beginning to recognize the importance of gold as a store of value.

From 2002 to 2009, China's gold reserves remained relatively stable, hovering around the 600-tonne mark. However, in 2009, China announced that it had been secretly accumulating gold reserves for several years, and that its actual gold holdings were closer to 1,054 tonnes. This sudden increase in gold holdings was a signal that China was beginning to view gold as a strategic asset, and that it was planning to diversify its foreign exchange reserves.

In the years that followed, China continued to increase its gold reserves at a steady pace. By the end of 2015, China's gold reserves had reached 1,762 tonnes, making it the world's fifth-largest holder of gold.

In the years since 2015, China's gold reserves have continued to grow, albeit at a slower pace. As of August 2021, China's official gold holdings stood at 1,948 tonnes. However, many analysts believe that China's actual gold holdings may be significantly higher than the official figure, as the Chinese government has a history of underreporting its gold holdings.

There are several reasons why China has been steadily increasing its gold reserves over the past two decades. One reason is that gold provides a hedge against inflation and currency devaluation. As China's economy has grown and its currency, the yuan, has become more widely used in international trade, the Chinese government has been looking for ways to protect its foreign exchange reserves from fluctuations in the value of the yuan.

Another reason why China has been accumulating gold is that it wants to diversify its foreign exchange reserves away from the US dollar. China holds trillions of dollars in US Treasuries, and there is a risk that the value of these holdings could decline if the US dollar were to weaken significantly. By holding gold, China is diversifying its holdings and reducing its reliance on the US dollar.

In conclusion, China's gold reserves have increased significantly over the past two decades, from just 394 tonnes in 2000 to almost 2,000 tonnes in 2022. China's government has recognized the importance of gold as a strategic asset, and has been steadily accumulating gold as a hedge against currency devaluation and to diversify its foreign exchange reserves. While the exact size of China's gold reserves is not known, it is clear that China's focus on gold is likely to continue in the years to come.