Central Banks Boost Gold Reserves Amid Geopolitical Risks

Central banks have been increasing their gold reserves in recent years, with approximately 1,000 tonnes of gold being purchased annually over the past four years. This is double the previous decade's average of about 500 tonnes per year.

The World Gold Council's 2026 Central Bank Gold Reserves Survey highlights the renewed interest in gold as a strategic tool for diversification and safeguarding against geopolitical risks. Many central banks are adopting alternative approaches to investing in gold, including buying internationally recognized physical gold bars and storing them as part of their official reserves.

The National Bank of Poland has adopted a vigorous accumulation approach, increasing its holdings by 102 tonnes by the end of 2025, reaching a total of 550 tonnes. This accounts for about 28% of total reserves.

Central banks are naturally drawn to physical gold because it does not carry issuer or sovereign credit risk. However, this approach comes with costs, including expenses for storage, insurance, transportation, verification, and security.