Survey Shows Nearly Half of Central Banks to Ramp Up Gold Reserves

Gold continues to strengthen its position within the global financial system, with central banks signaling a growing commitment to the precious metal despite record-high prices. According to the latest survey on Central Bank Gold Reserves by the World Gold Council, confidence in gold remains exceptionally strong among reserve managers globally. 

The study found that nearly 90% of participants expect total central bank gold holdings across the globe to increase over the next year, while a record 45% indicated their own institutions are likely to increase gold reserves. The findings come as gold’s role in international reserve management continues to expand. 

Recent trends have seen the metal gain greater prominence among official institutions as they seek assets that can help preserve value and reduce portfolio risk. 

A key takeaway from the survey is that central banks increasingly view gold as an important strategic asset rather than simply a historical reserve holding. Looking ahead, more than 80% of respondents expect gold to account for a larger share of global reserves within the next five years. At the same time, nearly three-quarters anticipate a decline in the share of reserves held in U.S. dollars. 

Central bank buying has remained remarkably consistent in recent years. Over the past four years, official-sector purchases have averaged around 1,000 tons every year, roughly double the figures recorded in the prior decade. 

Another notable development is the broadening participation among buyers. While emerging-market central banks continue to lead purchases, interest is spreading to a wider group of countries. Nations that were previously inactive have returned to the market, while several advanced economies are also considering higher allocations to gold. 

The survey found that 18% of developed-market central banks expect to increase their holdings over the next 12 months. 

Diversification remains the primary reason for accumulating gold. Reserve managers also cited protection against economic uncertainty, concerns about reserve-currency stability, and portfolio resilience as important factors behind their decisions. 

Gold’s traditional strengths continue to resonate with policymakers. Most respondents highlighted its ability to perform during periods of crisis, preserve purchasing power over the long term, and provide diversification benefits. Many also view gold as an effective hedge against geopolitical risks and financial instability. 

The survey’s record participation rate further underscores gold’s growing importance. With more central banks actively evaluating the metal’s role in reserve management, demand from the official sector appears likely to remain a significant driver of the gold market in the years ahead. 

With such strong interest coming from central banks, gold’s appeal is set to climb even higher, and companies like Platinum Group Metals Ltd. (NYSE American: PLG) (TSX: PTM) may be well positioned to benefit from this sustained demand. 

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