The Great Withdrawal:

Why is China replacing the "American promise" with "the yellow glamour"?
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There is a silent earthquake hitting the U.S. bond market, with its epicenter in Beijing.

The latest data reveals a structural change that cannot be ignored:
China's holdings of U.S. Treasury securities have decreased to only 7.6% of total foreign holdings, the lowest level in 23 years.

For those who read financial history, this number is terrifying.
China, which was once the largest financer of American debt, has stepped down from the throne and fallen to third place.
In contrast, we see Britain ( or rather the "financial district" in London ) increase its share by 4 times,
Japan – although it is currently the largest owner – has reduced its share by 26 points over two decades.
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The fundamental question:
Where does that withdrawn Chinese money go?
The answer shines clearly in the vaults of the People's Bank of China:
Gold.

What is happening is not just a "portfolio rebalancing", but rather a "redefinition of trust".

Since the freezing of Russian assets in 2022, Beijing ( and the Eastern world ) have realized a harsh truth: "U.S. bonds are not a risk-free asset, but a politically seizable asset."
If we disagree politically, your money is not yours.
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Therefore, the current Chinese strategy is clear:
Selling "paper debts" ( US Treasuries ) that rely on the promise of another party, and replacing them with a "sovereign asset" ( Gold ) that carries no counterparty risk (.
China does not buy gold for speculation, but rather to build financial independence away from the dollar system.
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We are witnessing a historic shift in global demand:
Demand is shifting from trust-based "financial assets" to scarcity-based "real assets."
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Summary for the investor:
When the second largest economy in the world sells the debt of the strongest economy in the world to buy gold in record tons, this is not direct investment advice..
This is a "roadmap" for what is to come.

If central banks prefer gold over the dollar, what about your portfolio?)