This explains everything – One country earns 142 billion dollars in two years from the gold rally that reached $4,200

When a few years ago Russia and China were buying gold frantically, no one understood what they were doing… in fact, some even mocked them…

But today, with the price of gold having skyrocketed to $4,200 per ounce, it becomes clear what has happened…
Russia’s gold reserves, in value, have increased by almost 142 billion dollars in two years, according to an analysis of Central Bank data.
Thus, on October 1, 2023, there were gold bars worth 140.5 billion in the vaults, and on October 1, 2025, there were already 282.1 billion.
This happened because of the market rally: prices for the precious metal more than doubled during this period, from $1,800 to $4,200 per ounce.
In physical terms, however, the stock slightly decreased — by 0.2 million ounces, or about 6.2 tons.
As of September 1, 2025, it amounted to 2,326.5 tons.
The share of gold in reserves at the beginning of October was 39.5%.
Its share in foreign currency increased by 0.6% over two years, reaching 431.1 billion dollars.

The West understood and became frightened

The gold-buying strategy of Russia and China is paying off… literally frightening the West, especially after the unprecedented gold rally, since from the time Russia began buying gold for its reserves, the price of gold has increased by 850%.
Prices have been rising particularly rapidly in recent years.
Since 2023, the price of gold has doubled and is ready to double again by the end of 2025.
The price of gold has already surpassed $4,200 per ounce.
This is a historic high, with analysts certain that within a few months, an ounce could easily cost $5,000 or even $6,000.
And in three years, perhaps even $10,000 per ounce.

The major shift away from American assets

From a global perspective, this shows how both Russia and China bet wisely when they began actively purchasing gold for their reserves, in order to replace the much-desired American government bonds.
China, which followed Russia a little later, also made the right move.
And it’s not only a matter of money, since the gold and foreign exchange reserves of both countries are growing as fast as gold prices.
This metal in their reserves allows Moscow and Beijing to withstand the economic war with the United States and the dollar with much greater confidence.

Increase of reserves

Russia’s gold reserves are estimated at about 320 billion dollars, with more than 2,330 tons of gold already accumulated in reserves.
Until 2006, Russia earned money only from selling gold, not from buying it itself.
With the arrival of new leadership in the Central Bank, its policy changed dramatically.
Russia turned from a net exporter into a buyer of gold.
At that time, the idea that something Western was dangerous probably didn’t exist.
On the contrary, it was a matter of economic pragmatism — not putting all your eggs in one basket.
But by 2014, it had become clear to the top leadership that relations with the West would never be the same.
That was when Russia became the first country in the world to begin a complete sell-off of U.S. Treasury bonds, which were then considered the safest and most liquid means of preserving the nation’s savings.
And Russia’s strategy, which within a few years had fully exited U.S. debt, ceasing to support the American economy, seemed like madness to many — something for which it would have to pay.
Instead, China, though not immediately, adopted Russia’s policy.
Over the last nine years, it has reduced its holdings of U.S. government debt by nearly half.
Previously, China was the largest holder of U.S. Treasury bonds, worth 1.4 trillion dollars (in 2015), but now it ranks only third, with 757 billion dollars.

The economic impact

This strategy had an astonishing impact on both economies.
Russia increased its gold reserves to record levels, unprecedented in the past.
With the funds freed from U.S. public debt, we are buying precious metals for reserves, as well as yuan and euros.
The yuan is necessary for the growth of trade with China, which has also taken off.
The euro, of course, was a disaster.
Such a rupture with the European economy was difficult to imagine, as it would be very painful for the EU itself.
But the Europeans went all in and chose economic recession and increased dependence on the United States.

The benefits

In practice, the Russian economy benefits from the large share of gold in the country’s reserves.
First, it is one of the factors contributing to the stability of the ruble, which has repeatedly surprised Western economists over the last four years.
Second, the more gold there is in reserves, the higher the fundamental stability of the economy is rated by analysts and agencies.
Despite harsh sanctions and the Second World War, the Russian economy continued to grow all these years.
Last year, its GDP grew even faster than the global economy.
In such a difficult environment, this is particularly valuable.
Third, gold physically stored within its territory guarantees the safety and integrity of our reserves.
Fourth, Russia has thus contributed to global de-dollarization, the rejection of the dollar-based financial system — the only “correct” one, according to the West.
Previously, economists could only speculate about life without the dollar theoretically, blindly, without any basis in experience or history.

Five key driving factors for the rise of gold towards $6,000 by April 2026

1. Persistent inflationary pressures and the decline of real interest rates, which increase gold’s attractiveness as a store of value.

2. Geopolitical risk – from Europe to the Middle East – and increased demand for safe havens.

3. Widening fiscal deficits in the U.S. and other developed economies, causing market concern about the creditworthiness of states.

4. De-dollarization and the end of American exceptionalism, as global confidence in the dollar erodes.

5. Accelerating gold purchases by central banks, which are diversifying their reserves away from the dollar.

Store of value

Now the practice of Russia and China serves as a shining example for the world — and even shows that an economy can grow faster than the global average without using the dollar, the Western SWIFT payment system, or investing in U.S. government debt.
It is likely that this has given China the confidence to begin acting more openly within the framework of a strategy to dismantle the dollar-based financial system and create an alternative.
The inflow of huge Chinese funds, released from the sale of U.S. government debt, into gold has also contributed to the rise in its price.
A few years ago, China was still hiding the fact that it was buying tons of gold.
But in the past year, it stopped hiding the obvious.
Moreover, this year, Beijing went a step further and wants to become the new custodian of foreign gold reserves.
For now, this privilege belongs only to Western countries.
But Shanghai is ready to compete with New York, London, and Zurich. And it has everything it needs.

Africa joins the “game”

China is actively cooperating with African and Asian countries, providing direct loans for their projects.
And one argument in favor of such loans could easily be the expectation that these countries will store their gold reserves in Shanghai.
For example, Ghana, one of the largest gold-mining countries in the world, is an active borrower from China.

Why does China need more and more gold?

China is doing something very simple: a move against the dollar and the creation of another cornerstone for transforming the yuan into a fully developed reserve currency.
One of the advantages of the U.S. dollar is that it is backed by the largest gold reserve in bars.
It doesn’t matter whether it is gold from the U.S. or from other countries storing their reserves within its territory.
What matters is the size of the gold reserves themselves.
This, among other things, supports confidence in the dollar as a reserve currency.
Attempts to undermine this confidence by claiming that U.S. vaults no longer contain as much gold have failed.
Confirmation of this theory would require an audit of U.S. gold vaults, something the U.S. is unwilling to undertake.

The old system is collapsing

But China’s strategy could well work and hammer another nail into the dollar-based financial system.
And of course, we must not forget the obvious reasons for building domestic gold reserves — in a climate of geopolitical and trade tensions, when the old rules of the game are collapsing before our eyes and new ones are being created, gold remains an island of stability.
Economists are betting on the ongoing destruction of the old order and the emergence of a new one, and therefore expect that the price will reach $5,000 per ounce by the end of this year or early 2026, and $10,000 within three years.

The loss for the dollar is a gain for gold

“De-dollarization” describes a slow but noticeable shift away from the U.S. dollar as the default global reserve and settlement currency.
It was not caused by a single event, but is the gradual result of geopolitics, sanctions, and the rise of alternative economic networks.
Simply put: it is the end of American exceptionalism – the idea that the dollar, U.S. debt, and U.S. financial institutions can dominate indefinitely without consequence.

Three structural forces behind the trend

1. Sanctions risk and the “weaponization” of the financial sector:
   The freezing of Russian reserves in 2022 made many central banks realize that dollar assets carry political risk.
   For some states, holding dollars to support the national currency became more precarious.

2. Geo-economic fragmentation:
   The expansion of the BRICS, trade in yuan, and energy deals in local currencies have weakened the “network” advantages of the dollar.

3. Unpredictable policy in Washington:
   Ballooning fiscal deficits, the second Trump administration with its aggressive tariff policy, the relaxation of international alliances, and pressures on the Fed’s independence undermine confidence in the stability of the dollar.
   
   
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