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● China-BRICS challenging dollar dominance, 5000 tons hidden gold.

China’s People’s Bank of China’s Gold Investment and Monetary System Transition Strategy to Change the Global Economic Landscape

Background to the Increase in Gold Reserves of the People’s Bank of China

The People’s Bank of China has recently been rapidly increasing its gold reserves.
In a situation where the credibility of the dollar has weakened due to geopolitical crises such as the war in Ukraine and the U.S.’s hawkish monetary policy,
Many countries, including China, are focusing on gold as a safe asset.
This movement has important implications for the global economy and changes in central bank policies.

BRICS and New Currency System Ideas

Not only China but also BRICS countries are choosing gold as a strategic asset instead of the dollar.
BRICS mentioned the possibility of introducing a new monetary system secured by a basket of goods as well as gold.
This move is interpreted as an attempt to convert the existing petrodollar system.
It is a change worth paying attention to right away due to changes in the global economy, monetary system, and geopolitics.

Supply and Demand Dynamics: The Present and Future of the Gold Market

Both central banks and the private sector are significantly increasing gold investment.
In addition to the officially reported 3,000 tons, China is speculated to have approximately 2,000 tons of hidden gold reserves.
Meanwhile, the global gold supply is limited due to limited reserves and environmental regulations.
As a result, demand is increasing while supply is decreasing, and strong upward pressure is expected to be exerted on gold prices.

Bitcoin and Gold, and Central Banks’ Strategic Choices

In some countries, including the U.S. Federal Reserve, there is a possibility of switching asset composition to Bitcoin as the value of the dollar declines.
If legal revisions or policy changes are made, central banks may sell some of their gold holdings to acquire Bitcoin.
However, considering the transparency issues of Bitcoin and its stability as a national asset,
In the long run, gold is analyzed to remain the best safe asset.
Investment should be made with caution as short-term gold price volatility may occur in this process.

Investment Outlook and Summary

The People’s Bank of China’s aggressive gold buying strategy
It serves as a countermeasure against dollar hegemony and a leader in changing the global monetary system.
As BRICS and other countries seek to transition to a gold-based monetary system,
Supply constraints and increased demand in the gold market provide a strong basis for gold investment.
Interactions with digital assets such as Bitcoin are also short-term volatility factors, but
Considering geopolitical risks, gold is still the best strategic asset.

– The People’s Bank of China is rapidly increasing its gold reserves in response to the global economy and geopolitical crisis.
– BRICS countries promote the transition of the existing dollar-centered monetary system and gold-backed currency.
– Central banks and private investors are expanding gold investment, and demand continues to increase amid supply constraints.
– There is a possibility of interaction with Bitcoin, but gold is superior in terms of long-term stability.
– As a result, it is an important time when the global economy, central bank policies, gold investment, and changes in the monetary system are intertwined.

[Related Posts…] Key Gold Investment Strategies / Central Bank Policy Trends

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