China Gold Rush: The Strategic Play to Dethrone the Dollar
Discover how China’s gold custodian bid, import rule changes, and BRICS alliances aim to challenge U.S. dollar dominance. Learn why gold’s 33% YTD rally and tokenized RWAs are key for investors in this 2025 de-dollarization saga.
In the high-stakes chess game of global finance, where currencies vie for supremacy and economic empires pivot on central bankers’ moves, China is crafting a formidable weapon: gold.
This isn’t just about shiny bars—it’s a calculated strategy to challenge the U.S. dollar’s century-long reign. From positioning itself as a global gold custodian to easing import rules and fueling a relentless buying spree, Beijing’s maneuvers signal a seismic shift.
With gold prices soaring past $3,800 an ounce in September 2025, sparking a 33% year-to-date rally, the world is watching closely. For retail investors, this isn’t just news—it’s a call to action.
Could tokenized gold and real-world assets (RWAs) be your ticket to this golden wave? Let’s dive into China’s multi-pronged assault on dollar dominance and why it matters for your portfolio.
China’s Bold Custodian Play
Imagine the People’s Bank of China (PBOC) as the new Fort Knox of the East. In September 2025, the PBOC is aggressively pitching itself as a global gold custodian, inviting central banks from “friendly” nations—think Southeast Asia, BRICS allies, and Belt and Road partners—to store their sovereign reserves in Chinese vaults.
The Shanghai Gold Exchange (SGE), established in 2014 for foreign traders, is the diplomatic front door, with its International Board now boasting custodian warehouses ready for action.
Early adopters? At least one Southeast Asian nation has signed on, per Bloomberg, signaling cracks in the West’s gold fortress, long dominated by London’s Bank of England vaults holding over 5,000 tons worth nearly $600 billion.
China’s official holdings stand at 2,298 tons, fifth globally, but whispers of a larger “hidden hoard” persist. This move isn’t charity—it’s leverage. By centralizing gold in Shanghai, China boosts trading volumes, tightens pricing control, and creates a gravitational pull for global bullion flows.
For clients, it’s a sanctions-proof bunker: Store here to dodge Western freezes, like Russia’s $300 billion hit in 2022. “Chinese vaults may provide… a shield against potential sanctions,” notes Bloomberg. Spot gold jumped 1.2% to $3,787 on the news, reflecting market nerves.
Easing Import Rules: Fueling the Frenzy
China, the world’s top gold consumer, isn’t just opening its vaults—it’s tearing down barriers to fill them. In mid-September 2025, the PBOC unveiled draft rules to streamline gold imports and exports, a game-changer for a nation gobbling up over 1,000 tons annually.
Out with six-month licenses; in with “multi-use permits” valid for nine months, usable unlimited times, and accepted at more ports. Building on 2016 reforms, these changes supercharge efficiency amid soaring demand.
The PBOC’s 10-month buying streak through August 2025—adding 60,000 ounces that month alone, pushing reserves to 74 million ounces ($253.8 billion)—demands this agility.
Gold now accounts for 7.64% of China’s $3.3 trillion forex reserves, up from 3.4% in 2023, as Beijing diversifies from dollar assets.
These rules “enhance vitality and respond to external shocks,” per the PBOC, but the subtext is clear: flood the market to fuel state hoarding and private demand. The result? A 33% YTD gold rally, with X buzzing about China’s bullion power grab.
BRICS and the De-Dollarization Dream
The BRICS bloc—now 10 nations strong with Egypt, Ethiopia, Iran, UAE, and Indonesia—is China’s ace in the hole. Holding over 20% of global gold reserves, led by China and Russia at 74% of that share, BRICS is a de-dollarization juggernaut.
At the 2025 Kazan Summit, leaders greenlit “BRICS Pay,” a blockchain-based system for local-currency settlements, sidestepping SWIFT’s dollar chokehold. Talks of a gold-backed BRICS currency, potentially launching in 2026, gained traction.
Central banks bought 166 tons in Q2 2025—a 41% jump—led by BRICS nations hedging against “dollar weaponization.” Russia’s post-sanctions pivot? Gold-backed energy trades in yuan or rubles.
India’s rupee-ruble deals? Gold-collateralized. China’s new Hong Kong vault, opened in June 2025 with waived fees through year-end, settles in yuan, challenging London’s 90% OTC dominance.
“The buying and selling of gold at the new vault will significantly improve the transaction volumes in the offshore yuan market,” boasts the SGE.
The dollar’s share of global reserves? Down to 57.74% in Q1 2025 from 70% in 1999. BRICS trade in local currencies hit 65% intra-bloc in 2024, up from 28% in 2015.
Why Retail Investors Should Care
This isn’t just geopolitical theater—it’s a portfolio game-changer. Gold’s 41% YTD surge, with Goldman Sachs eyeing $3,700 by year-end and J.P. Morgan forecasting 900 tons of 2025 central bank buys, screams opportunity.
Allocate 5-10% to gold as a hedge; it’s outpacing stocks amid volatility. But the real edge? Tokenized gold RWAs. Platforms like Tether Gold or Pax Gold offer fractional ounces on blockchain—liquid, tradable, and storage-free.
Pair them with DeFi yields (3-5% APY via staking), and you’re earning on an asset decoupled from dollar swings. As China’s yuan-denominated gold trades grow, RWAs could bridge crypto and commodities, aligning with BRICS’ multipolar vision.
Risks and the Road Ahead
Nothing’s guaranteed. Gold’s RSI is at a 45-year overbought peak, hinting at a dip. China’s domestic demand could cool if prices climb further. Geopolitical risks—like U.S. tariffs under a potential Trump 2.0—could hit exports.
Yet, Beijing’s long game is undeniable: erode dollar hegemony brick by bullion brick. “Markets may be speculating that China’s bid… signals a long-term push to elevate its role in the global monetary system,” says Wael Makarem of Exness.
With a speculated 5,300-ton hoard versus official 2,250, China could back a yuan surge, especially if BRICS delivers a gold-linked currency.
Your Move in the Gold Rush
China’s gold gambit—custodian ambitions, import reforms, BRICS synergy—positions it as a dollar-dethroning dynamo. For retail investors, this is your cue: stack gold, explore RWAs, and ride the rally. The dragon’s hoard is growing; will yours? With gold’s trajectory pointing skyward, now’s the time to act.
