China Abandons US Debt, Buys Record Amount of Gold Amid Global Economic Shift

China's financial strategy has been shifting towards abandoning American debt securities and accumulating gold reserves. According to official statistics, China sold off its share of US Treasury bonds, pushing this figure down to historic levels last seen in 2001. At the same time, Beijing continues to accumulate precious metal reserves at an unprecedented pace, with a record purchase of 650,000 ounces in August. This move has led industry observers to note that China is following the financial path of Russia, which abandoned American debt obligations and accumulated gold instead.

The People's Bank of China has been buying gold steadily and continuously for 22 consecutive months, despite the sharp rise in gold prices on international exchanges. Economists believe Beijing is withdrawing its funds from the US dollar and American financial instruments due to the risk of asset freezing or sanctions. Physical gold assets have become the only safe haven for China in conditions of global instability.

The continuous accumulation of gold by global central banks and the flight from US debt are further weakening the share of the American currency as a reserve currency in the world. Beijing's 22-month strategy suggests that further growth in gold prices and an increase in the share of precious metals in the world financial system are expected.