Nearly 30 percent of 70 central banks surveyed plan to add to their gold reserves within the next year, according to a World Gold Council (WGC) survey.
The WGC noted that despite two consecutive years of record central bank gold purchases and the metal reaching new all-time highs in 2024, reserve managers remain optimistic about gold. The 2024 Central Banks Gold Reserves (CBGR) survey gathered data from a record 70 central banks worldwide. The survey revealed that central banks are increasingly looking to gold to mitigate risks and prepare for further political and economic uncertainty.
The WGC’s research, conducted in partnership with YouGov between February 19 and April 30, 2024, included 70 responses from central banks around the world. In 2023, central banks added 1,037 tonnes of gold—the second-highest annual purchase in history—following a record high of 1,082 tonnes in 2022.
“Extraordinary market pressure, unprecedented economic uncertainty, and political upheavals around the world have kept gold front of mind for central banks,” said Shaokai Fan, Global Head of Central Banks & Head of Asia-Pacific at WGC. “Many of these institutions have become more aware of the asset’s value as a way to manage risks and diversify their portfolios. Despite record demand from the official sector in the last two years, coupled with climbing gold prices, many reserve managers still maintain their enthusiasm for gold.”
The reasons
According to the report, while 71 percent of central banks still view gold’s legacy as a reason to hold it, other reasons have taken precedence this year. The top three reasons now include gold’s long-term value (88 percent), performance during a crisis (82 percent), and its role as an effective portfolio diversifier (76 percent).
In emerging and developing markets, central banks maintain a positive outlook on gold’s future share in reserves portfolios. Notably, they are joined by advanced economy central banks, which now also view gold more positively. More than half (57 percent) of this group believe gold will account for a higher proportion of reserves five years from now, a significant increase compared to 2023, when only 38 percent held the same view.
Advanced economy central banks have also grown more pessimistic about the US dollar’s share of global reserves. This view, previously more prominent among emerging and developing markets, is now shared by more than half (56 percent) of advanced economy respondents, an increase of 10 percentage points year-on-year. Meanwhile, 64 percent of emerging and developing market respondents believe the US dollar’s share of global reserves will decline.
“What has been remarkable is that despite record demand from the official sector in the last two years, many reserve managers still maintain their enthusiasm for gold,” Fan added. “While influences like price may temporarily slow down purchases in the near term, the broader trend remains in place, as managers recognise gold’s role as a strategic asset in the face of ongoing uncertainty.”
