In the latest World Official Gold Reserves published by The World Gold Council (WGC), China was ranked sixth. Its reserves amounted to 1,762* tonnes and represented 1.7% of total foreign reserves. Not so close behind, in seventh position, was Russia, with 1,393 tonnes, representing 13% of total foreign reserves. The two countries rank behind the US, Germany, the IMF, Italy and France.

In 2015, the central bank of China was a significant buyer of gold. After announcing its updated gold holdings in June 2015, the People’s Bank of China purchased an additional 104 tonnes of gold in the six months from July to December 2015. If this figure is annualized, it results in a rate of purchases of more than 200 tonnes of gold per year.

The figure of 200 tonnes is double the average annual rate estimated from the country’s June 2015 update and suggests China may be stepping up its gold reserves purchases.

* Last published WGC estimate adjusted for December purchases

Top Ten Gold Holders (Tonnes)

Source: World Gold Council (Updated in January 2016 – Holdings as of November 2015 for most countries)

About the Author:
Imaru Casanova holds an appointment as senior gold analyst at VanEck. Mrs. Casanova is a proven expert on gold and gold mining and has been quoted, inter alia, in Barron's, USA Today, Investor's Business Daily and has appeared on CNBC.

The article above is an opinion of the author and does not necessarily reflect the opinion of MV Index Solutions or its affiliates.