Goldman Sachs Exposes China's Secret Gold Buying Spree

China's gold purchases have been shrouded in mystery for years, but new estimates from Goldman Sachs suggest that Beijing is buying twice as much gold as it officially reports. According to Goldman, China purchased an estimated 35 tonnes of gold in July, making it the largest known buyer during the month.

This figure is roughly double the amount reflected in China's publicly reported purchases, which are typically released through official channels. The discrepancy highlights a long-standing problem in the gold market: central banks often do not report their purchases immediately or completely.

Goldman tracks gold moving through the London over-the-counter market into domestic vaults or third-party custodians, allowing them to identify buying that may not yet appear in official reserve data. The bank estimates that China accounted for most of the 44 tonnes of total central-bank buying during July.