FT: China secretly buys hundreds of tons of gold, but reports little

The actual volume of gold purchases by China may exceed the official data by more than ten times, writes Financial Times with reference to the interviewed analysts.

According to official data, the People's Bank of China purchased only 6 tons of gold in June-August 2025, 1.9-2.2 tons per month. However, few in the market believe these figures.

Analysts at Société Générale estimate that China's actual purchases could reach 250 tons per year, which is more than a third of global demand from central banks. According to alternative estimates by the Plenum Research platform, in 2022-2023, the gap between official and actual purchases was more than 1,300 tons annually.

Bruce Ikemitsu, director of the Japan Gold Market Association, believes that China's current gold reserves are almost 5,000 tons – twice as much as the country officially claims.

Some purchases can be made not only by the central bank, but also by the sovereign wealth fund CIC and military structures that are not required to report.

Experts point to several reasons for concealing gold purchases.

First, public announcements of massive purchases of gold, a traditional alternative to the dollar, could worsen relations with the US administration. "Gold is seen as a pure hedge against the US," explained Nikki Schils, an analyst at Swiss gold refiner MKS Pamp.

Second, the announcement of intentions pushes prices up.

• In early October, the price of gold exceeded $4000 per ounce for the first time in history . Its value has increased by more than 50% since the beginning of the year.