China Hoards Gold Like It's 2017, Still Won't Touch Crypto 🪙

China's appetite for gold is showing no signs of slowing, even as other major economies deepen their embrace of digital assets. Customs data released this week showed the country imported approximately 173 tonnes of gold in June, marking the third consecutive monthly increase and the highest monthly figure since March 2024.

The purchases underscore a divergence in strategy between Beijing and Western governments that have moved to integrate crypto and blockchain technology into their financial systems. China maintains a strict ban on the trading and mining of cryptocurrencies and stablecoins, a stance officials have tied to efforts to prevent capital flight and financial fraud.

Demand is not limited to institutional buyers. Chinese retail investors have been steadily accumulating gold through small, incremental purchases arranged via bank-led savings plans, reflecting a broader grassroots appetite for the traditional safe-haven asset.

China's gold buying comes against the backdrop of renewed momentum across crypto markets, where ether has led a broad-based rally in recent sessions. Bitcoin, the largest cryptocurrency by market capitalization, also trades higher, with $BTC holding recent gains as $ETH extends its outperformance against major peers.

Analysts tracking the flows say the parallel trends highlight how capital allocation strategies in Asia and the West are diverging in real time, with one of the world's largest economies opting to double down on a 5,000-year-old store of value while others build infrastructure for assets that did not exist a decade and a half ago.