69% Central Banks Reveal: Gold’s Share Of Reserves Will Be Higher In 5 Years

29% Central Banks say they will add more gold in the next 12 months

FinTech BizNews Service

Mumbai, June 18, 2024: The World Gold Council has completed the 2024 Central Bank Gold Reserves Survey. Central banks have been significant buyers of gold in recent years amid both economic and geopolitical uncertainty. Our survey, which received responses from a record-high 70 central banks, shows that:

• Central bank sentiment towards gold remains very high, with 29% saying they will add more gold in the next 12 months and 81% saying that official sector gold reserves overall will grow in the same period
• Optimism towards gold’s future role in global reserves continues to grow, with 69% saying that gold’s share of reserves will be higher in five years compared to 62% last year
• Gold’s role as a long-term store of value is the most highly rated reason for central banks to hold gold, followed by gold’s performance during times of crisis
• There has been a notable uptick in how advanced economy central banks view the role of gold, with their perspectives now much more closely aligned with those of emerging market central banks

An increasingly complex geopolitical and financial environment is making gold reserves management more relevant than ever. 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.

Following these record numbers, gold continues to be viewed favourably by central banks as a reserve asset. According to the 2024 Central Bank Gold Reserves (CBGR) survey, which was conducted between 19 February and 30 April 2024 with a total of 70 responses, 29% of central banks respondents intend to increase their gold reserves in the next twelve months, the highest level we have observed since we began this survey in 2018. The planned purchases are chiefly motivated by a desire to rebalance to a more preferred strategic level of gold holdings, domestic gold production, and financial market concerns including higher crisis risks and rising inflation.

An increasingly complex geopolitical and financial environment is making gold reserves management more relevant than ever. 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.

Following these record numbers, gold continues to be viewed favourably by central banks as a reserve asset. According to the 2024 Central Bank Gold Reserves (CBGR) survey, which was conducted between 19 February and 30 April 2024 with a total of 70 responses, 29% of central banks respondents intend to increase their gold reserves in the next twelve months, the highest level we have observed since we began this survey in 2018. The planned purchases are chiefly motivated by a desire to rebalance to a more preferred strategic level of gold holdings, domestic gold production, and financial market concerns including higher crisis risks and rising inflation.