The World Gold Council released its “2024 Central Bank Gold Reserves Survey” report on Tuesday. The survey, conducted between Feb. 19 and April 30, gathered responses from 70 central banks.
The council emphasized that, amid an increasingly complex geopolitical and financial landscape, managing gold reserves has grown more critical. “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,” the council described, adding that over 80% of survey respondents expect reserve managers to increase global bullion holdings, the highest percentage recorded since the survey began. The report notes:
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,” the council explained.
Shaokai Fan, the World Gold Council’s global head of central banks and head of Asia-Pacific, commented: “Extraordinary market pressure, unprecedented economic uncertainty and political upheavals around the world have kept gold front of mind for central banks.” The executive elaborated:
While influences like price may temporarily slow down purchases in the near term, the broader trend remains in place, as managers recognize gold’s role as a strategic asset in the face of ongoing uncertainty.