Spread the loveThe standard explanation is that China is buying gold because it wants to destroy the dollar. The People’s Bank of China increased its reported gold reserves by 640,000 fine troy ounces in July, nearly 20 metric tons. China’s gold reserves were valued at $306.35 billion at the end of July, but this remains only a fraction of the country’s total reserve position. They do not prove that the dollar will vanish, that the yuan will replace it, or that gold must rise every month. The weaponization of the dollar encourages nations to accumulate gold while the absence of a credible replacement preserves the dollar’s central role.