A year ago, when the inaugural edition of The new era of mining was published, the price of gold was just under $2,000 an ounce—an all-time high. Twelve months later, the precious metal is up about 35 percent to more than $2,600 at the time of writing.

Gold purchases by central banks in developing countries have remained the main force driving prices, but the size of their holdings suggests intentions beyond simply hedging against geopolitical risk. China, as the prime suspect, has purchased more than 2,800 tonnes of gold from abroad over the past two years – more than all gold ETFs backing the metal globally. As a number of industry leaders acknowledge, a frenzy of this magnitude is the sign of a seismic shift. In simple terms, the BRICS countries, led by Beijing, are trying to de-dollarize their economies. As Alamos Gold CEO John McCluskey explains: “This trend suggests an increasing reliance on gold to support a parallel economic trading bloc driven by mutual distrust between these nations.”

Part of Beijing’s motivation is to gain immunity from potential future sanctions like those imposed by the West on Russia. “When the US froze Russian assets, central banks took notice, and now countries like China are diversifying to ensure their assets cannot be frozen in future disputes,” says Martino De Ciccio, CEO of Montage Gold. While it is difficult to predict when the gold buying streak will end, De Ciccio, whose company recently obtained all permits for its mine in Côte d’Ivoire, is confident that we are only witnessing the beginning of a persistent trend. Indeed, China’s gold reserves, in relative terms, are still the lowest of all major economies, indicating that Beijing’s aggressive buying strategy is set to continue over the long term. With this in mind, many gold producers are confidently expanding their operations around the world. Canadian B2Gold, for example, is investing heavily in further exploration and development, planning to soon produce around 600,000 ounces of additional gold per year.

This report was paid for by a third party. The views and opinions expressed are not those of Newsweek and does not constitute an endorsement of the products, services or persons mentioned.

Click here to download the full report