According to Cointelegraph: Central banks worldwide are amassing gold at unprecedented rates in 2024, pushing the precious metal to new all-time highs. According to a Sept. 2 report by the Kobeissi Letter, global net gold purchases by central banks reached 483 tonnes in the first half of 2024, setting a new record. This figure surpasses the previous record of 460 tonnes set in the first half of 2023 and represents a 5% increase year over year.

Key buyers included the National Bank of Poland, the Reserve Bank of India, and the Central Bank of Turkey, with significant purchases also recorded in the second quarter of 2024. The growing demand for gold among central banks reflects a shift towards store of value assets amidst global economic uncertainties.

Despite gold's strong performance, with prices hitting an all-time high of $2,525 per ounce on Aug. 27, Bitcoin has still outperformed the precious metal in 2024. Bitcoin has appreciated 37% year-to-date, despite a 22% drop from its March all-time high, compared to gold's 23% gain.

The increasing interest in gold is partly driven by concerns over the stability of Western reserve assets, as noted by Tolou Capital Management founder Spencer Hakimian. Meanwhile, the potential introduction of a gold-backed stablecoin by BRICS nations is expected to further boost demand for gold and challenge the dominance of the U.S. dollar.

However, while gold's momentum has turned heads, Bitcoin's overall performance this year continues to surpass that of gold, even as central banks remain cautious about the relatively new digital asset.