In 2022 and 2023, central banks purchased more gold than any year on record. This trend has continued into 2024 and 2025. It is perhaps the most important signal in the precious metals market.
The Numbers
- Central bank net gold purchases exceeded 1,000 tonnes in both 2022 and 2023
- This is roughly double the annual average of the prior decade
- China, India, Poland, Turkey, and Singapore have been among the largest buyers
Why Central Banks Are Buying
Sanctions Risk
After the freezing of Russian central bank dollar reserves in 2022, every central bank re-evaluated its exposure to dollar-denominated assets. Gold cannot be frozen.
De-Dollarization
The gradual shift away from dollar dependence means central banks need an alternative reserve asset. Gold is the only one that is not another country’s liability.
Inflation Protection
Central banks that created inflation through monetary expansion are now hedging against it with gold.
What It Means for Individual Investors
When the institutions that create money choose to hold gold, they are telling you something profound about their confidence in the system they manage. Individual investors would do well to listen.