Central Banks’ Demand for Gold Reserves Hits Record High, Global Gold Council Survey Finds
The latest survey by the World Gold Council reveals that central banks around the world have reached an unprecedented level of inclination to increase their gold reserves. According to the report, 45% of the reserve managers surveyed stated that their central banks plan to raise their gold holdings within the next 12 months; this figure represents a 2% increase compared to last year and is described as record-breaking.
The survey was conducted among 74 central banks. While more than half of the respondents, equivalent to 54%, said their gold reserve levels would remain unchanged, only 1% indicated a possibility of reduction.
Meanwhile, 93% of the participating central banks declared that gold is currently part of their foreign exchange reserves; this number was 81% last year, reflecting a significant rise in the precious metal’s role in countries’ monetary policies.
According to the World Gold Council’s findings, gold’s performance during economic crises, its ability to preserve long-term value, contribution to diversifying foreign reserves, and role as a shield against geopolitical risks are the main reasons for the increased preference among central banks to hold gold.
The report also adds that several central banks are in the process of transferring or diversifying the locations where they store their gold reserves. Among these, the Bank of England remains the most popular center for holding central banks’ gold around the world.
