How Much Gold Does the People’s Bank of China Have?
One of the most fascinating developments in the gold market since the turn of the century is China’s burgeoning role as a leader in the sector. The Chinese have been buying gold and the Chinese have been producing gold in record numbers now, whereas 15 years ago, they played a much smaller role in the global gold market.
As investors we want to have accurate data regarding China’s gold: how much is produced, imported, exported, and held. Unfortunately the People’s Bank of China is presumably not very forthcoming when it comes to reporting its gold holdings, and this makes the global fundamental picture of gold somewhat opaque. Nevertheless I think that there is enough information available to investors so that they can estimate approximately how much gold the PBoC has.
As this article plays out, the significance of this will become apparent to investors.
The PBoC updates its official gold holdings sporadically. Officially the PBoC holds about 1,050 tonnes of gold. However, this figure was last updated in 2008. Prior to that the figure was 600 tonnes, and it had been 600 tonnes for several years, from 2003-2007.