Central Banks Boost Gold Reserves to Historic Levels

Gold has long been regarded as a store of value and medium of exchange in human history. Beyond its use for jewelry, it is now widely seen as a safe-haven asset during turbulent times.

Central banks are among the largest gold holders, with their goal of supporting currencies by diversifying reserves and buying gold to enhance the perceived strength of an economy and currency. High gold reserves can boost trust in a country's solvency.

In 2022, central banks purchased a record 1,136 tonnes worth around $70 billion, according to the World Gold Council. This trend is particularly evident among emerging economies such as China, India, and Turkey, which are rapidly increasing their gold reserves.