Central Banks Flock to Gold as Instability Looms

A new survey by the World Gold Council reveals that 89% of central banks expect global gold reserves to grow over the next year. A record 45% of these institutions plan to increase their own holdings, signaling a growing expectation of economic and geopolitical instability.

According to the survey, central banks are looking for a safe asset during times of crisis, and gold has long been viewed as a reliable store of value. Gold's performance during crises was cited by about 90% of respondents as a primary reason for holding it, while another 84% pointed to its role as a long-term store of value and inflation hedge.

The trend suggests that many governments are preparing for a future they believe will be more volatile, with trade tensions rising and inflation persistently high. The survey also notes that even individual investors appear to share this mindset, holding onto or building their gold positions rather than cashing in.