“They know …”: The investment consultant refers to a new golden strategy in China in the global monetary transformation

As the geopolitical rift deepens and the global monetary system turns, gold is quietly reaffirming its power. Alock Jin, the founder of investment on the weekend, highlighted this shift, noting that “China encourages citizens to get more gold.”

His publication on X (officially on Twitter) Coordinated Beijing movements: From strengthening the demand for retail and expanding trade in gold to creating regional golden exchanges in China and the Middle East. “They know that gold has a future,” Jain wrote, contrary to China’s encouragement with the restricted position of India on golden loans and high import duties.

While the recent Geneva Trade Convention indicated the melting of ice in American -Chinese tensions, Beijing is following a deeper strategy: weakening the domination of the dollar by consolidating its financial system with gold and yuan.

In March 2025, this strategy took a pivotal turn. The CBIRC (CBIRC) Committee has issued a directive No. 2025-03, and imposed insurance companies to allocate at least 1 % of its assets-between an estimated 32 trillion yen ($ 4.5+ trillion)-to material gold. This step can go hundreds of billions to the gold market.

To facilitate this shift, the Shenghai Future Stock Exchange (SHFE) has been opened for insurance companies on direct gold purchases, bypassing global markets. SHFE stressed that this is the first time that insurance companies have received such access.

This is followed by a retail batch in early 2024, when the People’s Bank encouraged citizens to buy material gold. The result: 34 % increased in Chinese gold consumption on an annual basis.

The gold axis in China is contracts in making. Since 2000, official reserves have expanded from 395 tons to more than 2200 tons. However, actual property analysts suspect 5,000 tons, obtained through unusual channels to avoid interference markets.

Meanwhile, in India, gold is still culturally firm. Indian families, especially women, have more than 25,000 tons – primarily in jewelry, which are seen as inheritance and financial security. Nevertheless, government policies are still restricted, unlike the coordinated gold strategy in China.