Bessent's 2023 Gold-Backed Yuan Prediction Resurfaces as China Quietly Amasses Gold Far Exceeding Official Data

In 2023, current Treasury Secretary Scott Bessent floated the idea that China could develop a yuan backed by or convertible into gold to bypass the dollar system.

Three years later, with gold hovering near $4,700 an ounce, new market data suggests Beijing is quietly accumulating gold "far beyond what is officially reported," driving a broader shift among central banks toward the precious metal.

China's Stealth Gold Accumulation

An analysis of London over-the-counter (OTC) market data by Goldman Sachs and The Kobeissi Letter shows China acquired roughly 88 tonnes of gold in May and June alone, a figure well above official data.

This estimated accumulation aligns with Bloomberg data showing China steadily reducing its Treasury holdings to $633 billion while expanding its gold reserves.

This shift echoes Bessent's 2023 warning that countries facing geopolitical frictions would rotate reserves from Western fiat debt into physical gold held within their own borders.

BREAKING: China acquired 40+ tonnes of gold in June via the London OTC market, the second-largest monthly purchase since early 2025.

This is 167% higher than the 15-tonne increase in June officially reported by the People's Bank of China.

This follows an estimated 48 tonnes...

— The Kobeissi Letter, August 23, 2026

Central Banks Shift to 'Tangible Assets'

China is far from alone in this strategy. A World Gold Council survey shows 45% of global central banks plan to increase gold reserves amid persistent inflation and economic turmoil.

Rick Kanda, Managing Director at gold firm, noted that continued central bank buying is a "strong signal" of how seriously countries view market volatility.

Kanda emphasized that nations are actively "reducing their reliance on fiat currencies, protecting themselves from geopolitical risks by shifting toward the stability of 'tangible assets' like physical gold."

Macro Policy Uncertainty Fuels Precious Metals Rally

The precious metal's rally is further supported by shifts in Treasury yields and central bank expectations. Market analyst Alexander Lis noted that softer inflation expectations and Treasury buybacks have created a "stronger tailwind" for gold.

Meanwhile, macro strategist Bob Elliott noted that Washington's administrative efforts in managing the bond market reflect a broader "policy incompetence" that inadvertently channels liquidity toward precious metals over traditional equities.

As central banks accelerate reserve diversification away from US debt, asset owners holding physical gold remain the primary beneficiaries of this structural monetary shift.

How Has Gold Performed?

At last check, spot gold was up 0.96% at $4,648.73 per ounce. It is up 37.84% year-to-date, down 9.71% over the past six months, and up 14.61% over the past month.

Here's how some gold and gold miner-related ETFs have performed.

Gold & Gold Mining ETFs | YTD Performance | 6-Month Performance | 1-Year Performance

SPDR Gold Trust | 6.83% | -9.66% | 37.77%

iShares Gold Trust | 6.92% | -9.55% | 37.98%

SPDR Gold Mini Shares Trust | 6.31% | -9.48% | 38.15%

abrdn Physical Gold Shares ETF | 6.26% | -9.49% | 38.11%

iShares Gold Trust Micro | 6.26% | -9.49% | 38.23%

VanEck Gold Miners ETF | 18.41% | -3.23% | 73.44%

VanEck Junior Gold Miners ETF | 16.53% | -6.63% | 77.33%