In an article in The Sunday Guardian in India written M.D Nalapat, who is the Editorial Director of The Sunday Guardian, he proposed that the Chinese Government is stockpiling gold and also posed the question - could this eventually lead to the Chinese launching a Central Bank currency backed by gold?

Surely it would be better for China to have any digital currency that it wishes to create, to be backed by a basket of real assets that are traded on recognised stock exchanges? Such assets would include equities, bonds, property, a variety of commodities, not just gold, and fiat currencies.

China was reported in Bloomberg to have bought over 100 tonnes of gold since the trade war between itself and the USA started. The Chinese Government has been a consistent buyer for months and the 10th running month in September, as the People's Bank of China (PBOC) raised its holdings of the precious metal. However, it has some way to go to own more gold than many other countries, in particular, the USA.

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