A Kobeissi Letter report has revealed that China is still covertly stockpiling gold, having bought an additional 0.9 tons last December, marking the 14th straight monthly purchase. The report claims that China is reporting 10 to 11 times less gold than it is actually buying, suggesting that the +27 tons of total gold purchase officially reported in 2025 could be +270 tons in reality.
According to Goldman Sachs’ estimates, China bought over 15 tons of gold, nearly 10 times more than what was officially reported. Similarly, in November, China’s estimated gold purchases reached over 10 tons, approximately 11 times the amount the People’s Bank of China (PBoC) reported. According to the Kobeissi Letter, China is buying gold as if the world were in a major crisis.
Rumors that China was stockpiling gold behind the scenes began surfacing in 2023 and continued to gain momentum through 2024 and 2025. By April 2025, the PBoC was quietly buying unprecedented amounts of gold, with the country’s gold reserves reportedly going through the roof. China has allegedly been buying nearly five times as much gold as the PBoC discloses to the IMF since the Ukraine war began.
China reaffirms tight hold on gold market
China continues to stockpile gold behind the scenes:
China acquired +10 tonnes of gold in November, ~11 times more than officially reported by the central bank, according to Goldman Sachs estimates.
Similarly, in September, estimated purchases reached +15 tonnes, or 10 times… pic.twitter.com/CmC5eOvT33
— The Kobeissi Letter (@KobeissiLetter) January 27, 2026
The PBoC’s (reported and unreported) gold purchases exceeded 118 tons in the third quarter of 2025, 55% YoY and 39% MoM. Therefore, the Chinese central bank was considered the leading single entity driving global gold prices to record highs, with a more than 55% annual increase in 2025.
However, the estimated total for Chinese monetary gold reserves stood at 5,411 tons in Q3 2025, versus 2,304 tons reported by the PBoC to the IMF. Apparently, the weaponization of the U.S. dollar since the Ukraine war started in 2022 is the reason China and other countries in the mBridge project, like Saudi Arabia, are on a covert gold buying spree. These countries are reportedly looking to replace the dollar entirely, not hedge against it.
“We continue to see elevated central bank gold accumulation as a multi-year trend, as central banks diversify their reserves to hedge geopolitical and financial risks,…We maintain our assumption of average monthly central bank buying of 80 tons in the fourth quarter of 2026.”
–Lina Thomas, Analyst at Goldman Sachs
Meanwhile, global gold reserves are skyrocketing to the dollar’s disadvantage, as central banks load up on gold and push gold prices to all-time highs. The estimated total of central banks’ monetary gold reserves stood at nearly 220 tons by the end of Q3 2025.
PBoC seeks to dominate the global gold market
The PBoC is reportedly seeking to increase China’s influence in global gold markets by offering to hold foreign central bank gold reserves within the country. The PBoC has been using the Shanghai Gold Exchange to pitch the idea to central banks in friendly countries, and at least one Southeast Asian country has shown interest.
According to recent media reports, the push will allow Beijing to cement its role as a bullion hub and reduce reliance on the West. The PBoC views these custodian services as a key part of that infrastructure, helping enhance credibility and attract more trading activity.
Meanwhile, gold analyst Jan Nieuwenhuijs noted last September that central banks have technically been able to store gold in Shanghai since 2014. However, he stressed that uptake has been minimal so far, noting that at least one country possibly tied to the mBridge cross-border payment project is seriously considering the option.
On the other hand, China still faces competition from established gold markets like London, whose coffers hold more than 5,000 tons of global reserves. The World Gold Council (WGC) ranked China fifth among central bank gold holders as of January 2026. China is behind the U.S. (8,133 tons), Germany (3,350 tons), Italy (~2,452), France (2,437 tons), and Russia (2,329 tons).
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