China's Gold Buying Spree Sparks Debate Over Global Monetary Reset
China's gold buying spree has raised questions about whether the global monetary 'reset' is already underway, according to investor and author Willem Middelkoop. Speaking with Kitco News, Middelkoop argued that China views lower prices as an opportunity to accumulate more bullion, a strategy that could tighten the physical gold market in the future.
June saw Hong Kong import over 130 tonnes of gold, its largest monthly inflow since late 2014. This increase is attributed to preparations for Hong Kong's new bullion clearing mechanism and stronger demand from mainland China. Chinese imports also reached their highest level in two years during June, driven by lower international prices and increased inventories to satisfy retail demand.
Middelkoop believes that this buying trend is part of a broader effort by China to encourage ownership of physical bullion over paper positions. The country has recently restricted retail participation in Shanghai Gold Exchange products, ending customer access to spot and deferred gold contracts.