A major scandal in China’s gray gold market has revealed huge domestic demand for the precious metal. Experts believe that the country’s hidden purchases have become one of the key factors in the rise in world prices.
A financial scandal has broken out in the Chinese city of Shenzhen. Hundreds of investors accused the private company of fraud when trading gold. Clients were unable to withdraw money or receive physical metal. It turned out that the company was speculating in non-existent gold.
This incident highlighted the huge latent demand for precious metals in the country. According to analysts, China’s unofficial purchases are putting significant pressure on the global market. The price of gold is approaching $5,500 per ounce, up nearly 100% year over year. Silver has shown even more impressive performance, rising approximately 280% over the same period.
Industry experts believe that real gold reserves China’s may be more than twice as high as officially announced and reach 5,000 tons. The country is consistently reducing the share of dollar assets in its reserves, redistributing funds into physical gold and silver.
This strategy makes sense given China’s trade surplus of about $1 trillion in the first eleven months of 2025. Investments in metals outside the US financial system are seen as a way to protect assets from potential risks.
Active gold accumulation and silver by China has become an important element of global financial strategy. This not only keeps precious metal prices high, but also changes the structure of international reserves, reducing dependence on traditional currencies.
Source: @metalsesgtrends
