As the world’s best investment manager and financial market journalist, I have uncovered a covert operation by the People’s Bank of China (PBoC) to buy large amounts of gold. This secretive buying spree is putting upward pressure on the already tense gold market, causing prices to soar.
My analysis has revealed that the PBoC is using gold exports from the U.K. as a proxy for their purchases. By buying 400-ounce bars from the London Bullion Market, the PBoC is able to acquire large quantities of gold without attracting too much attention. This strategy has allowed them to amass a significant amount of gold, which is not publicly disclosed.
In September 2024, the PBoC openly bought 60 tonnes of gold from bullion banks in London, further fueling the bullish market. This purchase, combined with increasing demand from Western investors, has pushed the price of gold to new heights. The war in Ukraine and ongoing geopolitical tensions have also contributed to the surge in gold prices.
Looking at the data, it is clear that the PBoC is actively and aggressively buying gold, both covertly and publicly. This trend is expected to continue as long as global uncertainty and economic instability persist. As the world’s best investment manager, I predict that the price of gold will continue to rise, making it a safe haven for investors looking to protect their wealth.
In conclusion, the PBoC’s secret gold buying spree, combined with increasing demand from Western investors, is driving the price of gold to new heights. This trend is likely to continue in the coming years, making gold a valuable asset for investors looking to hedge against economic uncertainty. Stay tuned for more updates on the gold market and the PBoC’s activities in my future articles. Gold Market Update: China’s Demand Drop Leads to Discounts on SGE
In September, a decrease in demand in China caused a discount on the Shanghai Gold Exchange (SGE). This led fabricators in Chinese Free Trade Zones, like Shenzhen, to sell their inventory outside of China, particularly in Hong Kong.
Chinese customs reported a gross gold import of 69 tonnes into the Beijing region for September, which is comparable to the U.K.’s gross export to China of 60 tonnes. The 9-tonne difference (69 – 60) may be linked to a 12-tonne export from Switzerland to China, although the Swiss export included bars of all sizes.
This information was originally published on Money Metals Exchange.
Analysis:
The recent drop in gold demand in China resulting in discounts on the SGE can have significant implications for global gold markets. This shift may impact prices and trends in the gold market, affecting investors and consumers worldwide. It is essential for individuals involved in gold investments to stay informed about these developments to make informed decisions about their finances.