Despite lifting its gold reserves from 400 to 1,054 tonnes, China’s central bank might still want more.
The IMF recently approved a plan to sell one eighth of its gold holdings, about 403 tonnes, and China could be a key buyer.
Given that the IMF can’t sell such a large amount into the market without depressing prices, China, or any other country, would be expected to argue for a bulk discount.
Thus any such private transaction might not boost market prices for gold.
Also, even if China bought the entire amount from the IMF, the purchase would be tiny relative to the country’s $2 trillion in reserve assets. Like it or not, they’ll have to stick with US debt for some time to come.