🌍 Central Banks Are Making a Strategic Gold Play in 2025
Amid rising geopolitical tensions, inflation fears, and shifts in global power, the world’s central banks are making a clear statement: gold is back at the core of reserve strategy.
According to the latest 2025 Central Bank Gold Reserves Survey by the World Gold Council, central banks have been adding over 1,000 tonnes of gold annually for three consecutive years — more than double the pre-2020 average.
And it’s not just a trend. It’s a strategy shift.
📈 95% Expect Global Gold Reserves to Grow
A record-breaking 95% of central bank respondents believe that global gold reserves will continue to rise over the next 12 months. Even more striking: 43% expect their own institution’s gold holdings to increase, up from 29% just a year ago.
Why? Gold is:
- A proven hedge against crisis
- An effective portfolio diversifier
- A store of value amid currency risks
Emerging Market and Developing Economy (EMDE) central banks are leading the charge, especially those wary of over-reliance on the US dollar.
💵 The Dollar Dilemma: A Quiet De-Dollarization
While the US dollar still dominates global reserves (43% share as of Q3 2024), the tide is turning. 73% of respondents believe its dominance will decline over the next five years.
Instead, gold — along with the euro and renminbi — is expected to play a larger role. For many, it’s about reducing geopolitical exposure and managing systemic risks in a fracturing global order.
🛡️ Why Gold? Central Banks Speak
Surveyed banks cited the following top reasons for their gold allocations:
- 85%: Gold’s performance during crises
- 81%: Portfolio diversification
- 80%: Long-term store of value
Interestingly, EMDE banks place even more importance on gold’s geopolitical hedge role and its lack of default risk than their advanced economy counterparts.
🏦 Where They Store It: London Leads, But Domestic Storage Rises
The Bank of England remains the top vaulting location (64% of respondents), but a rising number (59%) now store gold domestically — up from 41% last year. A small but growing group is also actively managing reserves to enhance returns and manage risks.
🔮 Looking Ahead: Gold’s Role is Only Growing
With global uncertainty showing no signs of easing, central banks appear united in one thing: gold isn’t going anywhere.
In fact, it may be heading even deeper into the vaults — and strategies — of the world’s most powerful monetary authorities.
📊 Curious how this impacts gold prices or retail traders? Explore our latest gold trading insights at StartGoldTrading.com.
Data Sources:
https://www.gold.org/goldhub/research/central-bank-gold-reserves-survey-2025