Buying gold is not sustainable solution to US dollar reserves since gold is a limited quantity. If China keeps buying gold, value of gold will sky rocket but that's just speculative value of gold. Eventually the value of gold might fall causing losses for China.
What other option does China have if they want sanction proof their reserves? Buying Euro, Yen or any pro-western country is also not an option I think. Cause all of these countries could sanction China just like they sanctioned Russia.
Any other option?
This is the stupidies opinion I've heard in my entire life. Buying gold is not "sustainable", when it served exactly this same purpose for thousands of years. Not talking about trade, but for a store of value.
Precisely because it has a limited quantity, it is a way better alternative than the US dollar and USTs, you can't create it out of oblivion to devalue and debase it like those, it doesn't introduce volatility, sanctions potential, etc.
It has limited quantity, that's why the price will just have to readjust when it rises as the new excess reserves neutral settlement asset and finally become the dominant one.
You don't need to increase quantity, the price of gold will adjust accordingly to make up for that defect, this is basic logic and economics.
And no, not only is China buying it, but all the other countries are buying it, physical gold is a Tier 1 asset, that now broke the control of the US empire through the SGE and can finally rise.
You simply need gold, to store the value of your reserves, when you de-dollarize your trade (trade in local or regional currencies) and hold excess currency of trading partners that you can't use for other things (for trade in other direction, FDI there, don't want to buy their bonds, etc).
So, how is this "speculative", when the countries that are doing de-dollarization
simply need to have it? This is real economic monetary utility.