China promotes gold purchases

China’s central bank, the People’s Bank of China (PBoC), has lifted restrictions on gold imports intended to support the renminbi. Gold prices had risen sharply as a result of the restrictions. That’s because the renminbi had fallen to its lowest level in 16 years against the U.S. dollar. But now the Chinese currency has recovered against the U.S. dollar. China’s central bank has been very eager to increase its gold reserves so far in 2023. Generally, interest in further gold purchases is expected to remain high. Whether the figures reported by China are correct is doubted. Presumably, the gold holdings of both the central bank and its citizens are significantly higher. China also probably wants to distance itself from the dominance of the U.S. dollar.

The PBoC holds the seventh-largest gold reserves in the world. According to official figures, around 3.8 percent of total reserves are in gold. It is believed that this share should rise to at least five percent. So, China would have to buy a lot more gold, about 640 tons of gold. In terms of the largest gold reserves, the U.S. is still in the top position (about 68 percent of total reserves), followed by Germany, Italy, France, Russia and China.

Gold is valued and used worldwide as a crisis-proof investment opportunity. Gold offsets fluctuations in the U.S. dollar, and both physical gold and gold company stocks belong in a well-positioned portfolio. Among gold companies, Victoria Gold and Karora Resources appeal.

Victoria Gold – https://www.commodity-tv.com/ondemand/companies/profil/victoria-gold-corp/ – has been producing gold at its Yukon-based Dublin Gulch gold property since 2019.  The 100 percent owned property covers approximately 555 square kilometers. The company has just acquired additional properties in the Yukon.

Among the successful producers, Karora Resources – https://www.commodity-tv.com/ondemand/companies/profil/karora-resources-inc/ – is appealing. The company owns two gold mines in Western Australia. The second quarter of 2023 produced a record output of almost 41,000 ounces of gold.

Current corporate information and press releases from Victoria Gold (- https://www.resource-capital.ch/en/companies/victoria-gold-corp/ -) and Karora Resources (- https://www.resource-capital.ch/en/companies/karora-resources-inc/ -).

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