Studies On China's Gold Reserve Strategy Based On Individuals Owing Gold

Since Jamaica System is established, the international monetary system has entered the era of demonetization of gold. Gold still retained some functions of money after demonetization, including storage means, payment functions, finance functions and investment hedging function. In the last international financial crisis, the performance of gold's monetary functions was more prominent. Since gold still has functions of money, gold plays an important role in the international reserve system. As the relatively small size of China's gold reserves, China should establish gold reserve strategy based on its own national conditions, and actively seek ways to increase gold reserve.This paper analyzes the advantage of individuals owing gold relative to central bank gold reserve in the qualitative and quantitative research methods, demonstrate the inevitability of choose individuals owing gold as gold reserve strategy through individuals owing gold act on national macro-economy. Based on the foreign patterns of individuals owing gold, this paper comparatively studies the different characters of India and Japan's pattern of individuals owing gold. The pattern of India's individuals owing gold is characterized by gold consumption, and the character of Japan pattern is gold investment. The different patterns of individual owing gold in those two countries provide important reference for China's gold reserve strategy based on individuals owing gold.The development of China's individuals owing gold is still at an early stage, the greatest obstacle restricting the development of China's individuals owing gold is the lack of gold investment demand. Therefore, China should speed up the development of the gold market, focus on strengthening construction of the gold market environment, and actively develop gold investment products, and meanwhile, work out some relevant guide policy to encourage residents to invest and consume gold.