China Is Buying Massive Amounts Of Gold & Silver And Dumping Dollars

Having shaken out the speculators, the PBOC and China’s commercial banks have taken the opportunity to acquire significant quantities of bullion. In 2026 up to May, China imported 692 tonnes of non-monetary gold, with May’s figure of 163 tonnes the highest monthly total for over a year. We have yet to see June’s total but there’s every reason to believe that this rate of gold imports has continued.

Monetary gold is not recorded in customs figures. So far this year, this has amounted to an additional 40 tonnes to end-June, representing sales of foreign currencies by the PBOC, almost all dollars, to the tune of about $60 billion. But that’s not all. She also imported 1,626 tones of silver in Q1, selling a further $4 billion. Add in the non-monetary gold, ridding the banks of a further $100bn up to May. 

To this activity we can add other base metals and commodities which she has been buying such as copper. Add in sulphuric acid and fertilisers etc. which she no longer exports for dollars. Perhaps China sees this chart and understands the implications:

Get out of credit, which has been weaponised against her allies and could be weaponised against her. Furthermore, the decline in currency values priced in real money is accelerating. Clearly, the risk that the end of the fiat currency system is nigh is significant, in which case China should get rid of them to buy anything which she might need in the future. 

Being an ally of Iran, we can bet she sees the situation very clearly. G7 capital markets fail to do so, clinging on to the hope that Hormuz will be opened soon. And anyway, look at the price of oil which has drifted back to not much higher than it was before America and Israel attacked Iran. 

With respect to gold and silver prices, it looks much like the October—November 1973 drift lower. But this oil crisis is potentially worse than the late-1973 OPEC crisis.

In other words, the most important central bank in Asia is acting as if the dollar and attendant fiat currencies will soon be worthless. Meanwhile, her exports are hitting records, totalling $452bn in the five months to May. See the problem? If you have any unwanted gold and silver in return for dollars, the PBOC would like to hear from you.