As the saying goes, "All that glitters is not gold," but on the international financial stage, whoever has more "gold" gets to play the leading role.

When we talk about national power, our focus is often only on GDP and military strength, without realizing that gold reserves are also an important measure.

According to statistics, by the end of the second quarter of this year, the United States' gold reserves have reached 8,133 tons.

In comparison, as a major gold-producing country, how much gold reserves do we have?

"Gold is always a hard currency," a statement that still shines with immortal brilliance in today's complex and ever-changing international financial environment.

Think about it, in this era where digital currencies are thriving, why are countries still tirelessly hoarding gold?

The answer is simple: because gold is a symbol of strength and the ultimate guarantee of national credit.

The Americans are well aware of this.

Now, the Federal Reserve's vaults hold a staggering 8,133 tons of gold.

Advertisement

What's the concept?

It's equivalent to more than 2.6 million standard gold bars, piled up as high as a small mountain!

Such a large amount of gold is not only a "backbone" for the United States but also the "anchor" of the dollar's hegemony.

You know, whenever there is a sudden change in the global economy, the dollar can always stand firm, supported by this "golden mountain."

In comparison, although China's gold reserves are not as large as those of the United States, do not underestimate ourselves.

Remember, China's gold can also cause significant turmoil in the global market.

As the world's second-largest economy, every move we make affects the global market's nerves.

When we increase our gold reserves, international gold prices will rise accordingly; when we reduce reserves, gold prices may fall.

This is China's "butterfly effect" in the global gold market.

More importantly, as the internationalization of the renminbi progresses, our gold reserves are playing an increasingly important role.

They are not only a strong support for the renminbi's credit but also an important chip for our participation in the reconstruction of the international financial system.

However, one thing to keep in mind is that gold reserves are not static.

For example, the United States will also adjust according to international situations and domestic needs, and each adjustment will cause a shock in the global financial market.

This is the "butterfly effect" of the U.S. gold reserves, even more influential than China's.

So the question is: facing such a huge gold reserve in the United States, how should China respond?

Should we also increase our gold reserves significantly?

In fact, although the United States' gold reserves are more than three times that of China, it should be noted that China's economic volume is about 60% of the United States.

From this perspective, our gold reserves are not actually small.

You know, we have the tradition of "hiding wealth among the people," and a lot of gold is in the hands of the people.

Look at the Spring Festival, when everyone wears gold bracelets and gold necklaces, that's all real gold and silver!

But to be honest, the United States' gold influence is indeed greater than ours.

Imagine, if tomorrow the Federal Reserve announced that it would sell 1,000 tons of gold, what do you think would happen?

The international gold price would definitely plummet, and the global financial market might fall into panic.

Conversely, if the United States suddenly buys a large amount of gold, the gold price will soar, and then it may trigger a new round of "gold rush."

So, what impact does the gap between China and the United States' gold reserves have on the economies of both countries?

The dollar can become the world's main reserve currency largely because of so much gold as a backing, and if the renminbi wants to truly "go global" and become an international mainstream currency, increasing gold reserves is undoubtedly an important way.

For us, increasing gold reserves is important, but more crucial is to develop the real economy and improve technological innovation capabilities.

After all, the real national strength does not rely on piling up gold but on the intelligence and hard work of the people.

So, let's talk about it, how much is China's gold reserve?

Speaking of China's gold reserves, it's really a dramatic "golden legend."

From almost zero at the founding of the nation in 1949 to 2,264.32 tons now, how many stories and how many trials and tribulations are behind it?

Let's talk about the composition of China's gold reserves.

You might think: isn't it just a pile of gold bars and coins?

No, our gold reserves mainly consist of three parts: physical gold, gold shares in the International Monetary Fund (IMF), and some gold derivatives.

It's like a "gold investment portfolio," both stable and flexible.

From 2000 to 2020, in just 20 years, China's gold reserves have quadrupled!

This speed is faster than a rocket.

You know, increasing gold reserves is not as simple as buying cabbage.

Speaking of this, I have to mention an "accident" in China's gold reserves.

In July 2015, the People's Bank of China suddenly announced that gold reserves increased from 1,054 tons to 1,658 tons.

This once confused the international financial market, and everyone was guessing: how much "secret gold" does China still have?

In fact, behind this "accident" reflects the challenges China is facing.

On the one hand, we need to increase gold reserves to support the internationalization of the renminbi; on the other hand, we can't be too hasty to avoid causing market fluctuations.

So in the face of these challenges, how does China increase its gold reserves?

First, it's "buying quietly."

China's increase in gold holdings often adopts a low-key strategy, unlike some countries that make a high-profile announcement at every turn.

The advantage of doing this is to avoid causing market fluctuations and to buy at a relatively low price.

The second is "using local materials."

China is the world's largest gold-producing country, with an annual output of more than 400 tons.

We can directly convert part of the domestic gold into official reserves, which is convenient and trouble-free.

There is also "diversity."

In addition to directly purchasing physical gold, we also increase gold reserves through various ways such as participating in international financial institutions and carrying out gold leasing business.

It's like "walking on multiple legs," stable and flexible.

In addition, there is a final move of "using others' strength," such as encouraging commercial banks and individuals to hold gold, indirectly increasing the country's gold resources.

This move can be said to be the modern version of "hiding wealth among the people."

But there is a question, that is, since we are the world's largest gold-producing country, why is our reserve not as good as the United States?

Although our reserves are not as large as those of the United States, do not underestimate the power of 2,264.32 tons of gold.

It's like an "invisible hand," quietly affecting the direction of the global financial market.

For example, whenever the People's Bank of China announces an increase in gold reserves, the international gold price will rise accordingly.

Why?

Because everyone is guessing: is China going to buy a large amount of gold?

What's more interesting is that China's move to increase gold holdings will also affect the decisions of other countries.

For example, countries like Russia and India have also started to follow suit and increase gold holdings.

It's like a "gold arms race" without smoke.

Looking at the United States again, the United States' gold reserves not only support the international status of the dollar but are also an important chip for its financial sanctions.

Think about it, without so much gold as a backing, can the United States still print money at will?

Can it still impose financial sanctions on other countries at any time?

So, gold reserves are not only a manifestation of a country's economic strength but also a guarantee of its voice in the international financial system.

That's why countries are scrambling to increase gold reserves.

So, what will the trend of gold reserves between China and the United States be in the future?

For China, the pace of increasing gold reserves may continue to accelerate.

On the one hand, this is the need to support the internationalization of the renminbi; on the other hand, this is an inevitable choice to cope with international financial risks.

But the way we increase gold may become more diversified and covert to avoid causing market fluctuations.

As for the United States, they may maintain the existing scale of gold reserves but will pay more attention to optimizing the structure of reserves, such as increasing the proportion of gold derivatives to improve the flexibility and return on reserves.

Interestingly, with the rise of digital currencies, the "gold reserves" in the future may not be just physical gold.

Digital gold, or even Bitcoin, may become new choices for central banks' reserves.

This is like a competition between "old and new gold," and it's hard to say who will laugh last.

Gold, this ancient and mysterious metal, still plays an irreplaceable role in the modern financial system.

It is a symbol of national strength.

In the future, as the global economic pattern changes and new technologies develop, the form and significance of gold reserves may change, but it can be affirmed that in the foreseeable future, gold will still be an important part of the international financial system.