Is China Trying to Kill the US Dollar? Experts Warn Its Massive Gold Buying Spree Is Working

The US dollar's long-standing reign as the world's primary reserve currency is facing a formidable challenge. A quiet, calculated move by China to stockpile massive amounts of gold could, as experts warn, be the first step in a plan to dethrone the dollar.

This high-stakes economic strategy is already sending shockwaves through global markets.

Why Is Beijing On A Gold-Buying Spree?

China has emerged as a dominant force in the global gold market. Torsten Slok, Chief Economist at Apollo Global Management, notes China is 'playing a key role in the ongoing rise in gold prices',. This is driven by aggressive central bank buying, arbitrage trading, and surging demand from Chinese households.

This isn't a new trend. Reports in July revealed China's central bank has been quietly accumulating gold since 2022. Experts suggest the motives are clear: 'Countries view gold as a way to get around economic sanctions', said Steve Schoffstall of Sprott Asset Management in an interview.

Venture capitalist Chamath Palihapitiya agrees, calling the strong buying a 'significant shift in global sentiment'. He suggests governments and individuals are scrambling to protect themselves from escalating geopolitical and economic risks.

A 'Significant Shift' That Could Weaken The Dollar

The implications of this gold binge are profound, directly threatening the US dollar's supremacy. Slok explained that due to global economic uncertainty, the world's central banks may soon prefer to hold more gold than US dollars.

This move by China could 'deeply affect the global economy and weaken the U.S. dollar's dominance'. It's a warning that a new financial order could be on the horizon, one less reliant on America's currency.

Gold's Wild Ride: Prices Soar Past $4,000 Then Tumble

This rush to gold has ignited prices, which soared above £3,333 ($4,000) per ounce, a jump of almost 50% since the start of the year. The rally has been a boon for gold mining companies, with market expert Ed Yardeni forecasting gold might hit £4,167 ($5,000) by 2026 and even £8,333 ($10,000) by 2030.

But volatility struck on Tuesday. Gold prices suddenly fell more than 5% in a single day, triggering a sell-off in mining stocks. The VanEck Gold Miners ETF (NYSE: GDX) fell 9.42%, while Newmont Corp. (NYSE: NEM), the world's largest gold miner, dropped 9.03%.

Despite the sharp correction, gold prices remained resilient, holding above $4,100 per ounce.

Beyond Bullion: Investors Scramble To Diversify

The report highlighted that true wealth building is not about a single asset. The gold volatility reminds investors to diversify across markets, from real estate and fixed income to precious metals.

This has boosted platforms offering alternative assets. Arrived Homes, backed by Jeff Bezos, allows fractional investment in rental houses from just £80 ($100). Vinovest offers fine wine investment from £800 ($1,000), while Worthy Property Bonds provides 7% fixed returns from £8 ($10).

Others, like IRA Financial, help move retirement funds into crypto or real estate. For investors still committed to bullion, American Hartford Gold offers physical gold and silver for IRAs, with a £8,000 ($10,000) minimum.