Gold Purchases by Global Central Banks Hit 56-Year High and Seen Growing Tremendously This Year

As the saying goes, "buy gold in troubled times". Gold tends to be more attractive during times of global instability, which has also contributed to a surge in demand for the metal over the past year.

As geopolitical tensions such as the conflict between Russia and Ukraine continue to intensify, central banks are reconsidering their investment strategies and plan to continue buying gold aggressively this year.

Central banks are expected to continue to increase gold holdings.

Non-Western Countries Snap up Gold, China’s Central Bank Raises Its Total Gold Reserves to More than 2,000 mt for the First Time

According to data from the World Gold Council, the amount of gold purchased by central banks rose 152% year-on-year in 2022 to 1,136 mt, reaching a new high since 1967.

A recent annual survey of 83 central banks found that more than two-thirds of respondents believe that global central banks will continue to increase their gold holdings in 2023. These 83 central banks manage a total of $7 trillion in foreign exchange assets.