China’s Gold Buying Is Not Simply a Bet Against the Dollar
The standard explanation is that China is buying gold because it wants to destroy the dollar. That makes a dramatic headline, but it confuses diversification with replacement and political ambition with market reality. The People’s Bank of China increased its reported gold reserves by 640,000 fine t
Source: Armstrong Economics
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DW NOTE
The PBoC added 640,000 fine troy ounces to reserves — that's 19.9 tonnes, or $140 million at current prices. For an economy with $18 trillion in GDP and $3.2 trillion in reserves, that's rounding error. China isn't weaponising gold; it's doing what every central bank does when the dollar's real yield is negative and geopolitical risk is repricing: it buys harder money. Diversification is not revolution.