Central banks across the globe are currently in a gold buying frenzy, accumulating impressive amounts into their reserves. For 2024 these institutions increased their gold holdings by 1,044.6 tonnes. This represents the 15th year in a row of net increases to central bank gold holdings. This trend reflects a long-term shift across central banks toward diversified asset portfolios that respond to an increasingly volatile global economic landscape.
In the first half of 2025, central banks accumulated a record 415 tonnes of gold. At the same time, South Korea’s central bank is reportedly weighing its own gold addition. Heung-Soon Jung, a representative of the Bank of Korea, threw an interesting monkey wrench in. He added that gold is a price reserve substitute for the US dollar. This decision reflects a larger pattern in which nations are diversifying their reserves to lessen their dependence on U.S. assets.
The Bank of Korea must be vigilant on the markets. This will allow them to determine when and how much gold to eventually purchase. Decisions will hinge on “the evolution of its international reserves,” alongside the price trajectories of gold and the Korean won. The central bank’s wing-clipping demeanor is an expression of a continuing effort to augment its own financial condition and antipathy to market volatility.
2022 witnessed a stunning shift as central banks added the most net gold since 1950. They even gained a whopping 1,136 tonnes! This record-breaking surge in purchasing activity established the foundation for the following years, including 2023’s strong growth. Last year was the third-largest increase in gold reserves ever. In 2024 the expansion slowed to just 6.2 tonnes, missing the mark by 91 tonnes from the record high of 2022.
The World Gold Council noted that central banks were increasingly turning to gold through both official and unofficial channels, indicating a strategic shift in how countries view their reserve assets. Other countries — most notably China — have been more successful in their acquisitions, often leveraging the back channels. This underscores the emerging role of gold as a financial protective asset.
“Diversification with a reduction of U.S. assets is becoming a defining trend for many central banks.” – World Gold Council
Centrifugal force Madagascar’s central bank is in line with this trend, planning to boost its gold reserves from 1 tonne to 4 tonnes. This potential decision highlights a wider recognition among various nations regarding the value of gold in maintaining economic stability.
So while these factors are encouraging for gold buying trends, World Gold Council analysts are still taking a conservative stance. They stated, “We don’t expect any near-term resolutions,” suggesting that while interest in gold continues to grow, geopolitical tensions and market uncertainties may temper immediate actions by central banks.
Furthermore, they added, “We don’t see an end to this narrative unless there is a material shift in geopolitical tensions.” This perspective illustrates the intricate relationship between international power dynamics and economic maneuvering as countries move through unpredictable fiscal waters.