Chinese financial institutions are rapidly depleting their gold stocks amid soaring domestic demand and record-high prices. Major banks such as the Industrial and Commercial Bank of China, Agricultural Bank of China, and China Construction Bank report limited availability of popular investment bars—ranging from 10 to 200 grams—with several banks resorting to preorder systems.
"Even as gold prices may continue to rise in the short term, related risks are likely to accumulate," noted Wu San from the Bank of China Research Institute. He emphasised the importance of portfolio diversification to mitigate these emerging risks.
In parallel, Russia's gold reserves are also dwindling. A recent RBC report, based on data from Russia's Central Bank, revealed that physical gold holdings fell by 46.4 per cent in 2024—a drop of over 33 metric tonnes—and now stand at 38.1 tonnes, valued at approximately $3.4 billion. Although Russian consumer purchases increased by 6 per cent to 75.6 tonnes, the overall decline marks the lowest reserve levels since July 2022.
With global spot gold prices trading near $2,906 per ounce, both nations are grappling with unprecedented market pressures as they navigate this challenging landscape.
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