Why Is China Rushing to Buy Gold? A Strategic Shift in Global Finance
Over recent months, China has significantly increased its gold acquisitions across multiple sectors—including its central bank, institutional investors, and private citizens. This concerted effort reflects a strategic initiative aimed at reducing reliance on the U.S. dollar and enhancing the nation's financial resilience amid escalating geopolitical tensions and global economic uncertainties.
Central Bank's Continued Gold Accumulation
In April 2025, the People's Bank of China (PBoC) expanded its gold reserves for the sixth consecutive month, adding 2.2 tonnes and bringing the total to 2,295 tonnes. This accounts for 6.8% of China's total foreign exchange reserves—a figure that, while below the global average of approximately 20%, indicates a sustained upward trajectory in gold accumulation.
Institutional Investors Embrace Gold
In a notable policy development, China's financial regulators have authorized ten major insurance companies, including China Life Insurance and PICC Property & Casualty Co., to invest up to 1% of their assets in gold. This move is designed to provide a hedge against financial shocks and to stabilize long-term investment performance.
Surge in Retail Investment via Gold ETFs
Chinese retail investors have demonstrated unprecedented enthusiasm for gold-backed exchange-traded funds (ETFs). In April alone, inflows into these ETFs reached a record $7.3 billion, surpassing the total inflows for the entire first quarter of the year. This surge is attributed to factors such as escalating trade tensions with the U.S., concerns over economic growth, and expectations of local currency depreciation.
Strategic Implications for Global Finance
China's aggressive gold acquisition strategy transcends mere defensive posturing. By diversifying its reserves and elevating the role of gold, Beijing is signaling a commitment to monetary sovereignty. Gold, as a universally recognized asset, offers a credible alternative to Western-dominated fiat currencies, particularly the U.S. dollar. This strategic shift underscores China's intent to reshape the global financial landscape in favor of a more multipolar currency system.
At Odiot SA, we closely follow global trends that shape the future of finance, craftsmanship, and investment. With a heritage dating back to 1690, our legacy is deeply rooted in the art and value of precious metals — from gold and silver to vermeil. We understand that these metals are not only valuable assets but also enduring symbols of stability, cultural heritage, and long-term trust. As markets evolve and new economic paradigms emerge, precious metals continue to play a vital role — both as instruments of beauty and as pillars of financial resilience.
Original article source: Investisseur TV — Pourquoi la Chine se rue sur l’or