We applaud Uganda for taking this big step to use domestic resources. To help build the market, they have just launched a pilot program, lasting two to three years, to buy gold directly from artisanal miners. With this new initiative, the administration hopes to strengthen local mining industries and purchase a reliable domestic supply of gold for the country.
China’s PBOC is allegedly purchasing gold on the sly in huge quantities. This move follows the global trend of purchasing precious metals by central banks, which has made headlines lately. Central banks worldwide continued to add gold reserves at a historic pace of 166 tonnes in the second quarter of 2024. This action is a great example of a larger tactic that’s been playing out.
The first six months of 2024 have produced the second highest official central bank gold buying on record at +1,044.6 tonnes. Of these notable additions, Poland has been the stand-out performer, with the country adding to its official gold reserves to 515 tonnes. National Bank of Poland Governor Adam Glapiński has announced the goal of raising gold reserves to 20 percent of all reserves. He underscores the central bank’s focus on diversifying its asset portfolio.
Kazakhstan led the way by showing a strong demand for gold this year, bringing 25 tonnes of gold into its reserves. In August, Kazakhstan reigned supreme as the biggest gold buyer, adding another 3 tonnes. Turkey’s central bank has been in a 26-month long buying spree. In fact, in August alone, it added 2 metric tons to its reserves. The Czech Republic has followed this trend by consistently buying 1-3 tonnes of gold per month since March 2023. In August, they continued to strengthen their reserves by bringing in another 2 tonnes.
Of course, for nine months running now, China has been announcing positive outflows from its official reserves. In August by itself, the nation added a stunning 2 tonnes to its reserves. In short, central banks stacked an additional 10 tonnes of gold that month.
As of Q3 2025, Poland is still the biggest buyer of gold! The creative strategies being adopted by these countries suggest a forward-looking view towards hedging against economic volatility and the looming threat of geopolitical conflict.
“We maintain our view that central banks will continue to add gold to their reserves. Our Central Bank Gold Reserves Survey 2025 shows that respondents overwhelmingly (95 percent) expect global central bank gold reserves to increase over the next 12 months, while 43 percent believe that their own gold reserves will also increase over the same period. Notably, none of the respondents anticipate a decline in their gold reserves.” – World Gold Council
Central banks’ persistent net-gold-buying is arguably more motivated by a sweet spot of factors including a confusing web of global economic drivers. Analysts from the World Gold Council have noted that “as such, gold’s rally so far this year, up 26 percent, to new record levels, has likely contributed to the slowdown in central bank buying.” They claim that the current trend in gold purchasing underscores favorable trends to gold as a positive strategic asset. This trend is exacerbated by times of inflation and other uncertainties.
“We don’t see an end to this narrative unless there is a material shift in geopolitical tensions. The IMF has downgraded growth prospects in the U.S. more than in other major economies, citing policy uncertainty. This suggests that other countries may have leverage in negotiations, although these typically last months and years, not weeks. Hence, we don’t expect any near-term resolutions.” – World Gold Council
The rationale behind these purchases is clear. Central banks are positioning themselves against trade-related risks and economic volatility. Given recent trends, it’s no wonder that they’re inclined to stay the course and continue looking at gold as a strong, stable asset class.