As geopolitical gaps deepen and global monetary order changes, gold calmly restores its strength. Alok Jane, founder Investing Weekend, has promoted this shift, noting: “China calls citizens to keep more gold.”
His message on X (formally Twitter) emphasized coordinated steps in Beijing: from raising demand for the difference and expansion of gold trade to the creation of regional gold exchanges in China and the Middle East. “They know that gold has the future,” Jane wrote, contrasting China with a restrictive position of India on gold loans and high -introduced duties.
While the recent Geneva Trade Agreement signaled the thaw in US-China tension, Beijing pursues a deeper strategy: the dollar domination, securing its financial system into gold and yuan.
In March 2025, this strategy adopted the main turn. The Banking and Insurance Commission on China (CBRC) has issued a directive No. 2025-03, which obliges insurance firms to allocate at least 1% of its assets-32 trillion ($ 4.5+ trillion). This step can direct hundreds of billions to gold markets.
To facilitate this change, the Shanghai Futures Exchange (Shfe) was opened by the insured for direct purchases of gold, bypassing the global markets. SHFE confirmed that it was the first time insurers received such access.
This stems from retail on the beginning of 2024, when the People’s Bank of China called on citizens to buy physical gold. Bottom line: 34% spike in the consumption of Chinese gold per year.
The golden turn in China has been in decades. Since 2000, it has expanded official stocks from 395 tons to more than 2200 tons. Analysts, however, suspect that the actual stocks exceed 5,000 tons purchased through opaque channels to avoid scary markets.
Meanwhile, in India, gold remains culturally secured. Indian households, especially women, contain more than 25,000 tons – primarily in jewelry, which are considered both heredity and financial security. Despite this, state policy remains restrictive, unlike coordinated gold in China.
