On July 17, the People's Bank of China (PBOC) announced that it had increased its gold holdings by 600 tonnes. The last time it had announced its reserves was in 2009. This meant that, over the past six years, the bank, on average, had been buying about 100 tonnes of gold a year, making them the largest gold buyer on the planet.
Now, like other central banks, PBOC is announcing changes in its gold position on a monthly basis. And, indeed, it added 19 tonnes to its holdings in July, 16 tonnes in August, and a further 15 tonnes in September. And, while the announcement of a 600-tonne increase over the last six years may have been a disappointment, the possible purchase of a couple hundred tonnes annually makes China a huge buyer in the market.
China’s Gold Reserves: 30 June – 30 September 2015 (Tonnes)
Source: Bloomberg
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