China has set up a gold sector fund which involves 65 countries and the ancient Silk Road. It was set up during ongoing forum on investment and trade in China’s northwest Xi’an city.

The fund shall be led by Shanghai Gold Exchange (SGE) and is expected to raise 16.1 billion dollars in three phases. China is the only country to set up such a “largest”fund for nations. There are 60 Countries which fall along the routes of 21st-Century Maritime Silk Road (MSR) and Silk Road Economic Belt have made their investment in the fund.

Advantage of the fund:

1. This fund will facilitate gold purchase for the central banks of member states.
2. It will increase their holdings of the precious metal.
3. It will be also invested in gold mining in countries along the Silk Road.
4. It will help in increasing in exploration in countries such as Afghanistan and Kazakhstan.

Points to Remember:

1. At present, China is the world’s largest gold producer and also a major importer and consumer of gold.
2. Its share in international gold trade is very small.
3. By setting up this fund, China seeks to increase the impact of its domestic currency Renminbi (RMB) in the international gold pricing by opening the domestic gold market to international investors.