The gold rush is accelerating. The BRICS nations stacking gold reserves is a silent revolution.

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The People’s Bank of China (PBoC) is covertly buying very large amounts of gold, adding upward pressure to a tense gold market.

An explosive cocktail of Western institutional investors and central banks in the East buying gold this year is making the gold price rise sharply. Interest rate cuts and geopolitical strain will sustain this bull market.

U.K. Gold Exports to China Are a Proxy for PBoC Buying
Last July, I published an analysis proving how the Chinese central bank covertly buys gold in the London Bullion Market through bullion banks.

All “non-monetary” gold (privately owned metal) in China is traded over the Shanghai Gold Exchange (SGE)1. However, since the war in Ukraine began, there has been more supply in the Chinese market than sold through the SGE; the “surplus” reflects what the PBoC buys.

Gold exports from the U.K. are virtually all in the form of 400-ounce bars from the London Bullion Market. The retail market in the U.K. pales in comparison to the wholesale market that deals in “large bars” (400-ounce bars).

On the SGE, very few large bars are traded—the Chinese private sector prefers 1 Kg bars. My research shows that direct exports from the U.K. to China are, in fact, purchases by the PBoC. These purchases show up in cross-border trade statistics because the PBoC buys the gold from bullion banks that take care of shipping and insurance and thus have to deal with customs.

https://www.moneymetals.com/news/2024/11/26/chinese-central-bank-just-secretly-bought-60-tonnes-of-gold-003648

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