Customs Data Reveals a Massive Discrepancy
China’s official customs figures show that imports of Canadian gold are far larger than Ottawa’s own trade records suggest. While Statistics Canada reported just $1.9 billion in direct shipments of unwrought gold to China and Hong Kong in 2024, Beijing’s customs agency placed the value at $25 billion. The gap stems from how trade flows are tracked. Canada records exports to trading hubs such as London or New York, while China requires importers to declare the true origin of bullion. The result: Canadian gold appears in China’s books even after multiple resales across global exchanges.
Gold Outpaces Traditional Commodities
This reclassification elevates gold to the top of China’s import list from Canada, ahead of coal, petroleum, and canola. Unlike those consumable commodities, bullion remains in circulation, gradually building the stockpile of “above ground” gold that now totals more than 216,000 tonnes worldwide. China’s accumulation has been especially aggressive: its central bank increased reserves to 2,292 tonnes by early 2025, compared with 1,800 tonnes less than a decade ago. The surge coincides with a 25% jump in global gold prices this year, lifting Canadian mining stocks and pushing the Toronto Stock Exchange benchmark more than 11% higher despite trade-related headwinds.
Strategic Hedge Against the Dollar
Analysts point to Beijing’s broader financial strategy. By shifting from U.S. dollar–denominated assets to physical gold, China aims to insulate itself from global volatility, domestic market weakness, and currency pressures. Experts describe this as a deliberate effort to diversify reserves and reduce exposure to Western monetary policy. Canadian bullion, moving through Hong Kong, Switzerland, Britain, and U.S. exchanges, has become a crucial part of this long-term plan. Industry voices argue that Canada itself should reconsider its passive stance and build gold reserves rather than selling into a rising market.
Global Market Implications
China’s voracious appetite places ongoing pressure on supply chains. Each bar minted by the Royal Canadian Mint may pass through several intermediaries before reaching the People’s Bank of China, yet the end effect is consistent: gold flows eastward, tightening global availability. For investors, this persistent demand suggests that bullion prices could remain structurally supported, while Canada’s mining sector benefits from both export strength and rising valuations.
