PBoC Gold Conduit Revealed - Chinese Central Bank Did Not Stop Buying Gold In May

Summary

• At the core of the Chinese domestic gold market, which excludes Free Trade Zones, is the Shanghai Gold Exchange, where predominantly 1Kg gold bars are traded.
• “Unreported” PBoC gold purchases exploded when $300 billion in foreign exchange reserves from the Russian central bank were frozen by the West early 2022 due to the war.
• The Chinese central bank desperately needs to diversify its foreign exchange reserves since the beginning of 2022.

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This article is an analysis of how the Chinese central bank (PBOC) buys gold in London from Western bullion banks. Because the bullion banks take care of the gold transport for the PBoC, the shipments from London to Beijing are disclosed in UK