Central Banks’ Gold Reserves Expected to Increase

More than nine in ten (95 per cent) reserve managers indicated that they expect central banks to continue increasing their gold holdings in the next 12 months, according to new 2025 data released by the World Gold Council. This report comes against the backdrop of geopolitical and economic uncertainty, with a record high since it was first tracked in the 2019 survey, representing a 17 per cent increase from the 2024 findings.

Survey Findings

The 2025 Central Banks Gold Reserves (CBGR) survey, which collected data from a record 73 of the world’s central banks, also finds that nearly 43 per cent of central banks plan to add to their own gold reserves within the next year. Reserve managers’ favourable view of gold persists even in the face of record-high gold prices and 15 successive years of central bank gold buying.

Motivations for Holding Gold

The top three current motivations for holding the asset have shifted to its long-term store of value (80 per cent), its role as an effective portfolio diversifier (81 per cent), and its performance in times of crisis (85 per cent). Gold continues to be used as a safe-haven asset to help mitigate risks as ongoing economic and geopolitical uncertainty continues to weigh on reserve managers.

Emerging Markets and Developing Economies

Central banks in emerging markets and developing economies (EMDE) have once again maintained their positive outlook for gold’s future share in reserve portfolios. Notably, 28 out of 58 (48 per cent) EMDE respondents thought that their own gold reserves would increase in the next 12 months, compared to 3 out of 14 (21 per cent) of advanced economy respondents, more than last year.

Storage and Currency Holdings

Although interest rate levels remained a key component of both groups’ motivators for holding gold, inflation (84 per cent) and the geopolitical situation (81 per cent) were top of mind for EMDEs, while 67 per cent and 60 per cent of advanced economy respondents felt the same. Notably, more central banks are increasingly storing gold domestically: 59 per cent of the respondents said they have gold in domestic storage, up from 41 per cent in 2024.

Expert Insights

Shaokai Fan, Global Head of Central Banks & Head of Asia-Pacific (ex-China), commented: “After eight years of conducting this survey, we have reached an important milestone: nearly half of the central bank respondents intend to increase their own gold holdings in the coming year.” Fan added that this reflects the current global financial and geopolitical environments, where gold remains a strategic asset as the world faces uncertainty and tumult.

Conclusion

The research was conducted by the World Gold Council in partnership with YouGov, with 73 responses from central banks around the world. The findings suggest that central banks will continue to increase their gold holdings, driven by the need for a safe-haven asset in times of uncertainty. As the world faces ongoing economic and geopolitical challenges, gold is likely to remain a key component of central bank reserve portfolios.