What Is a Gold Reserve?

Gold reserve refers to the gold held by a country's monetary authority to balance international payments and maintain or affect the exchange rate level as a financial asset. It plays a special role in stabilizing the national economy, curbing inflation, and increasing international credit.

[huáng jn ch bèi]

Gold reserve means a currency reserve held by a country's monetary authority to balance

"Reserve" is explained in "Ci Hai": "stored for use". 1965

The significance of correctly understanding the concept of gold reserves lies in: first, it is helpful to determine a reasonable size of gold reserves;

The need for countries to reserve gold is determined by their gold currency commodity attributes. Due to the excellent characteristics of gold, gold has historically functioned as a currency, such as

Reference factors for determining the size of the gold reserve: 1.

Because gold has an international reserve function, gold is treated as a long-term reserve value

In the first three months of 2012, mainland China imported 135.5 tons of gold from Hong Kong, an increase of 587% year-on-year. ^[6]

The time when China released official gold reserve data in April 2009 was 1054 tons. Interestingly, China s official gold reserves are still 1054 tons as shown by the IMF data so far.

The Global Gold Association released a report in April 2013 that the global central bank increased its gold reserves by 534.6 tons last year, and the amount of gold purchased reached a record high since 1964. Since 2013, the price of gold has fallen by 14%, and global central banks have temporarily become the big losers of the decline in gold prices.

According to statistics from the association, as of 2012, global central banks have become net buyers of gold for eight consecutive quarters. The total amount of gold held by central banks in various countries has reached 31694.8 tons, accounting for 19% of total gold production. It is expected that global central banks will continue to buy 450 to 550 tons of gold in 2013, with a total value of up to 25.3 billion US dollars at current prices.

At the same time, gold prices, which have been rising for 12 consecutive years, have recently plummeted. Currently, the price of gold has fallen by 28% from a record high of $ 192.70 an ounce in 2011. Since 2013, the price of gold has fallen by 14%. The global central bank that swallowed 534.6 tons of gold last year has temporarily become a big loser in the fall in gold prices. ^[8]