2025 is now the year, and the Russia-Ukraine conflict has been raging for three and a half years. I thought this was a local war, but the result gradually evolved into a major geopolitical reshuffle that affected the world. People fighting in Eastern Europe are awakened by central banks around the world. And one of the most unexpected "sequelae" of this war is-- A large group of countries have actually begun to ship gold to our country.
You say this matter is far away from the common people. It does sound quite abstract; But you say it doesn't affect. The logic behind it is actually the same as "where to put money safely" in our daily life.
A war blew up the huge relocation of gold reserves
In the final analysis, the starting point of all this is the conflict between Russia and Ukraine. At the beginning of 2022, Russia began special military operations against Ukraine. Soon, the United States and Europe began to be "ruthless". Economic sanctions are wave after wave, and the sanctions list is longer than the queue in Spring Festival travel rush.
To really let the world’s central banks breathe a cold breath is the US Treasury’s order: Directly frozen hundreds of billions of dollars of foreign exchange reserves of the Russian central bank.This is not your ordinary "ban deals" or "raise tariffs". This is naked to tell the world: As long as I am not happy, the money you keep with me will be frozen if I say so.
Do you think that Russia is not a small country, it is one of the world’s major energy exporters, and the central bank’s reserves are full. I worked hard and saved the house, if one day I encountered no photography, would it also be empty?
Since then, many central banks around the world have begun to adjust their strategies in a low-key manner. The proportion of assets in dollars and euros has quietly decreased, but the proportion of gold has slowly increased. Because gold does not rely on credit guarantee, it is real material. As long as you hold it in your hand, no one can touch a hair on you.
But here comes the new problem: Where to put gold?Previously, people used to put gold in London, New York, such as the "old financial center". safe, stable, old qualifications, sounds pretty popular. but this time Russia's encounter, let these traditional "safe" credibility, greatly discounted.
Why does more and more gold come to our country "across the ocean"?
Starting from 2023, many countries have successively transferred gold to our country. This is not a groundless rumor, but a real "move". Emerging market countries such as Kazakhstan and Thailand have publicly stated that they will transfer some of their gold reserves to my country for custody. Some people may say: Aren't they afraid? How to rest assured?
The key is that you don't give "safe sense". our country in these years is not only the world's largest gold consumer, producer, but also the largest gold importer. the scale of the market is there, and more importantly, we are still quietly supplement the lesson missing in the past: The legal system, custody mechanisms, and market transparency are all closer to international standards.
For example, the Gold Hosting Business Guidelines, issued in 2024, clarified the processes and rules for gold hosting between central banks. It is no longer “you believe me, I will give you it”, but there are chapters that can be followed and verified.
For example, the interconnection mechanism between the Shanghai Gold Exchange and Hong Kong has also been launched. It's like opening a new 24-hour bank in front of your doorstep. It's convenient to deposit and withdraw. Who doesn't want to use it?
And our gold market has another advantage, which is that we are pricing in RMB, which is a very tempting option for countries that want to get rid of the dollar dependent.
Behind the gold shift is the “silent rearrangement” of the global order.
In fact, where to put the gold is a very delicate choice. It may seem like a financial issue, but it is actually a strategic decision.Gold is not a stock, it doesn’t go up or down, and the central bank doesn’t buy it to make money, it’s to “press the box.”
So, More and more countries are putting gold in our country, not only because of the large market and comprehensive laws, but also because they are re-selecting their "circle of friends."Behind this, in fact, the confidence in the Western financial system is shaken. In the past, people felt that the dollar was stable, the euro was strong, and put it there was safe. No matter how big a bank is, it may be "overturned"; no matter how old an ally is, it may also be "broken".
On our side, although we have not yet fully communicated with all international finance, we have at least not done the "face-to-face" thing, coupled with the "Belt and Road" cooperation and the advancement of the RMB cross-border payment system. We are building a new “commercial quantity” rule.
Of course, we do not avoid problems: for example, there is currently a price difference between gold and external markets, capital accounts are not yet fully convertible, and there is still room for improvement in transparency. But the key is that We are doing practical things and advancing step by step.
This is a sharp contrast to those countries that will only "scorp" at international conferences and do nothing afterwards. War, sanctions, and financial risks are on the rise, and central banks around the world are no longer naïve in believing in so-called “traditional safe harbours.”
Our country, relying on a solid pace of reform and a stable policy environment, It has quietly become a new choice for gold reserves.This is not "grabbing business", but a transfer of trust; Not a short-term craze, but a starting point for a long-term trend.
As more and more countries bring gold to our country, we will see not only the growth of numbers, but also the change in the right of speech in international rules.Gold doesn't speak, but it moves, revealing who the world really believes.In this age of unpredictable change, trust is more expensive than anything.
reference
Who is crazy about gold? 18.4 billion poured into gold ETFs in a week, afraid of missing out, and afraid of receiving the last stick Financial Associated Press