Li Xunlei: The great power game is a long-term process, and I continue to see the value of investing in gold.

On November 14th, at the Wealth Management and ETF Ecological High-Quality Development Summit held by Zhongtai Securities, Zhongtai International's Chief Economist Li Xunlei stated that the great power competition is a long-term process, and he continues to see the value of gold as an asset allocation. In the context of great power competition, China's continued rise will impact the current globally dominant US dollar-based monetary system. Li Xunlei mentioned that global central banks have been increasing their gold holdings by over 1000 tons for three consecutive years, far exceeding the average of 400 to 500 tons in the previous ten years. 95% of central banks are expected to continue increasing their global gold reserves in the next 12 months, with 43% planning to increase their own gold holdings, compared to 29% in 2024. In addition, gold reserves held by countries other than the United States have a clear substitution effect for foreign reserves, and this phenomenon is accelerating. Furthermore, the total amount of gold held by central banks worldwide is approximately 1.175 billion ounces, which is less than the 1.23 billion ounces in 1965. This means that while the global currency size has increased several times over the past 60 years, the share of gold held by central banks has actually decreased.