Editor’s Note: For years, we refused to work with precious metals companies simply because we didn’t see a need to recommend them during the Trump era. We are STRONGLY recommending America-First companies now, especially for those wanting to protect their retirements long-term. As Central Banks, the CCP, and our own government quietly horde away gold and silver, it behooves Americans to pay attention. Here’s a report from our premium news partners at The Epoch Times that should be a clear sign about the direction of the economy. But know this: Every excuse the powers-that-be make for their moves to precious metals are just smokescreens. China isn’t really worried about sanctions. They’re worried about economic collapse.
China added 1.03 million ounces (32 tons) of gold to its reserves in November 2022, according to an official statement by China’s State Administration of Foreign Exchange (SAFE) on Dec. 7. Meanwhile, its holdings of U.S. treasury bonds fell to a 12-year low.
Analysts speculate that while China augments its gold reserves to hedge against risk, reducing U.S. dollar assets aims to mitigate possible sanctions for its support of Russia’s Ukraine invasion.
The increase brings China’s reported gold holdings to 63.67 million ounces (1,980 tons), worth about $112 billion. The SAFE statement is the first official update on China’s reserve assets since September 2019.
China’s holdings of U.S. treasury bonds dropped for the second month, to their lowest level since June 2010. The decrease left its holdings below $1 trillion for the sixth straight month.
A Global Trend
The move was in line with the overall demand for gold in 2022, as central banks around the world increased their gold reserves. Data published by World Gold Council on Dec. 2 showed that international gold reserves sustained a 41 percent increase in October. They are currently at their highest level since 1974, totaling 36,782 tons of gold.
In the third quarter of 2022, the total amount of gold purchased by global central banks was estimated to be almost 400 tons, worth around $20 billion. It was the largest single-quarter gold purchase globally since 2000, based on data published by World Gold Council in November.
As central banks scramble to purchase gold, total holdings of U.S. treasury bonds have declined. The volume of U.S. treasury bonds held by overseas central banks shrank continuously in September and October.
The number slid from $7.5386 trillion at the end of August to $7.1854 trillion at the end of October, according to data released by the U.S. Treasury Department on Dec. 15. The decrease totaled $353.2 billion.
Japan, the top foreign owner of U.S. treasury debt, reduced its holdings for four consecutive months in 2022; they stood at $1.078 trillion in October.
The price of U.S. treasuries has been dropping since August 2020 when the price of 30-year treasury bonds stood at over $182. The price was slightly over $125 on Dec. 30.
Given the current tendency to buy gold and sell U.S. treasury bonds, some experts suggest that the measures are intended to compensate for losses caused by the falling price of U.S. securities, and as a hedge against inflation.
Complex Motives
China’s motives may be more complex, however.
Albert Song is a researcher at Tianjun, a political and economics think tank. He told The Epoch Times on Dec. 31: “It may not be the top priority for the CCP to offset the adverse impact of falling prices of U.S. treasury bonds.”
While Song acknowledged that China may wish to hedge against risk, he emphasized that the CCP also “wants to avoid the latent risk of sanctions for its clandestine support for the Russian invasion of Ukraine.’
Moreover, he added, “The salient facts are the escalating tension of U.S.–China relations and [China’s] decoupling on every front.”
Song said he suspects that the CCP frequently provides false data to present an inflated image of China’s economy.
“Although the CCP’s central bank has disclosed that it has increased its gold reserves by 32 tons by the end of November, the published data is overstated to some extent,” he said, noting that “the amount is smaller than that of other gold-exporting countries, which may indicate that gold has been used for other purposes.”
To illustrate the discrepancy, Song pointed to data showing that Switzerland shipped 80.1 tons of gold to China in July, the second-highest monthly total since 2012.
Gold’s Unique Functions
Global gold prices fluctuated wildly in 2022. In March, due to the outbreak of the Russia–Ukraine war, gold soared to $2,000 per ounce, then fell as a consequence of the Federal Reserve’s strong interest rate hike. It witnessed a rebound later in the year, and started the new year at a six-month high.
In a world of intensifying political and economic uncertainty, augmenting gold reserves becomes a priority, Song said.
“Gold, as the hard currency favored by both the government and the people for hundreds of years, bears unique functions of hedge and appreciation, which ordinary currencies lack. Gold becomes germane particularly when a government is increasing money supply excessively.”
Why the National Debt Is the Looming Threat to Your Retirement Plans
The Hidden Crisis No One Is Talking About
Every day, headlines warn about inflation, market volatility, and global instability—but the greatest looming threat to your retirement might be something far more fundamental: America’s skyrocketing national debt.
You can learn more about how the national debt affects you by reading this 3-minute report titled, “Debt Will Hit $40T in 2026: Prepare Your Retirement Now“.
With debt growing faster than most Americans can possibly fathom, the government’s borrowing habits have reached historic—and dangerous—levels. To cover spending, Washington is making moves with their budget packages, tariffs, and taxes. Is it enough? No. It’s not even close to what would be necessary to stop out-of-control debt, let alone reverse it.
How Debt Erodes Your Nest Egg
There are only so many levers government and the Federal Reserve can pull to try to protect Americans, assuming that’s even a top priority for them. Unfortunately, pulling one level to relive one pressure invariably adds pressure from another direction. This is why prices keep going up even as inflation reportedly slows.
For retirees and pre-retirees, that’s a perfect storm. The dollars you’ve worked hard to save lose value, and your cost of living increases while your investments lag behind.
If you’re relying solely on paper-based assets—stocks, bonds, or mutual funds—you’re essentially tied to the same system that’s creating the problem. It’s a system that was designed to work well in the 20th century, not in today’s world with people living longer and the dollar rapidly losing value.
This is why the 3-minute report, “Debt Will Hit $40T in 2026: Prepare Your Retirement Now,” is so important.
The Precious Metals Hedge
Thousands of Americans are looking for a tangible, time-tested hedge: physical gold and silver.
Unlike paper assets, precious metals aren’t dependent on government policy or the stock market’s mood swings. They’re real, finite resources that have maintained value for thousands of years through wars, recessions, and inflationary periods.
In fact, during times of high inflation and fiscal instability, gold often performs its best—because it’s seen as a store of value when faith in the dollar weakens. This is why prices have skyrocketed this year and are expected by many economists to continue going up in the future.
Take Control with a Gold IRA
One of the most effective ways to protect your retirement from national debt fallout is through a self-directed Gold IRA. This IRS-approved account lets you hold physical gold and silver within your retirement portfolio, giving you:
- Direct ownership of your assets
- A hedge against inflation and dollar decline
- The control to diversify beyond Wall Street
Augusta Precious Metals specializes in helping Americans just like you take this step with confidence. The company has earned a strong reputation for transparency, education, and personalized service—making it one of the most trusted names in the industry.
The Next Step: Secure Your Financial Future
Augusta Precious Metals has helped thousands of Americans with at least $50,000 to invest from their IRAs, 401(K)s, TSPs, and other retirement accounts safeguard their savings through precious metals.
If you’re concerned about what the rising national debt could mean for your future, now is the time to act.
Read this 3-minute report titled, “Debt Will Hit $40T in 2026: Prepare Your Retirement Now“ and learn the simple steps you can take to protect your retirement.