(Mike Maharrey, Money Metals News Service) After taking a breather earlier this year, central banks are once again gobbling up gold, with October purchases hitting the highest level of the year.
Central banks globally increased their gold reserves by 53 tonnes (net) in October. That was up 36 percent from September, and the highest level of monthly purchases this year.
October central bank gold buying built on a strong third quarter, with official reported purchases coming in at a net 220 tonnes. That was up 28 percent from Q2 and 6 percent above the five-year third-quarter average.
The World Gold Council said the pickup in central bank gold demand in Q3 “is evidence that central banks continue to add gold strategically, despite facing higher prices.”
After a pause, Poland became active again, reporting a 16-tonne increase in its gold reserves. That lifted its gold holdings to 531 tonnes, representing about 26 percent of its total reserves.
In September, the National Bank of Poland announced plans to boost its gold holdings to 30 percent of its total reserve assets.
When he announced plans to further expand Poland’s gold reserves, National Bank of Poland Governor Adam Glapiński called gold “the only safe investment for state reserves,” in these “difficult times of global turmoil and the search for a new financial order.”
In an interview earlier this year, Glapiński emphasized that gold is not directly linked to any national economic policies, is a safe haven during crises, and retains its real value over the long term.
“It is a symbol of stability that enhances our credibility in the eyes of investors and foreign partners.”
To date, Poland ranks as the top central bank gold purchaser with an 83-tonne increase to its reserves.
For the second straight month, Brazil expanded its gold holdings in October, adding 16 tonnes to its reserves. A 15-tonne purchase in September was the first increase in the country’s gold holdings since 2021. The Brazilian central bank now officially holds 161 tonnes of gold, representing about 6 percent of its reserves.
Uzbekistan’s central bank reported a 9-tonne increase in its gold stockpile in October after selling 4 tonnes in September. It is not uncommon for banks that buy from domestic production – such as Uzbekistan and Kazakhstan – to flip-flop between buying and selling.
The Central Bank of Turkey increased its holdings by 3 tonnes in October. The Turkish central bank has been a net purchaser for 29 consecutive months – since June 2023.
The Czech National Bank has followed a similar strategy – growing its gold reserves at a slow and steady pace. It added another 2 tonnes in October, its 32nd straight month of gold accumulation. The Czech Republic now holds 69 tonnes of gold. Czech officials say they plan to increase gold reserves to 100 tonnes by 2028.
China has reported an increase in its official reserves for 12 straight months, adding another tonne in September. The People’s Bank of China has increased its official holding by 400 tonnes in that span.
Total official Chinese gold reserves are now over 2,300 tonnes, making up around 7 percent of its total reserves.
Notice the emphasis on “official.”
China is among the central banks that are likely to hold significantly more gold than they publicly disclose. As Jan Nieuwenhuijs has reported, the People’s Bank of China is secretly buying large amounts of gold off the books. According to data parsed by the renowned Money Metals researcher, the Chinese central bank is currently sitting on more than 5,000 tonnes of monetary gold located in Beijing – more than TWICE what has been publicly admitted.
Mainstream reporting has finally picked up on this.
The following central banks also reported gold purchases in October:
- Indonesia – 4 tonnes
- Kyrgyz Republic – 2 tonnes
- Ghana – 1 tonne
- Kazakhstan – 1 tonne
- Philippines – 1 tonne
Russia was the only significant seller in October, reporting a 3-tonne decline in its reserves. The Russian central bank is reportedly selling gold into the domestic market to support the ruble and the economy as the country continues to cope with economic sanctions.
While robust, central bank gold buying has slowed somewhat this year (the big jump in September and October notwithstanding). Despite the slowdown, the World Gold Council remains bullish.
“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.”
You can read more details about that central bank survey HERE.
On net, central banks officially increased their gold holdings by 1,044.6 tonnes in 2024. It was the 15th consecutive year of expanding gold reserves.
Last year was the third-largest expansion of central bank gold reserves on record, coming in just 6.2 tonnes lower than in 2023 and 91 tonnes lower than the all-time high set in 2022 (1,136 tonnes). 2022 was the highest level of net purchases on record, dating back to 1950, including since the suspension of dollar convertibility into gold in 1971.
To put that into context, central bank gold reserves increased by an average of just 473 tonnes annually between 2010 and 2021.
World Gold Council analysts said, “Central banks are likely to continue their buying spree,” calling central bank purchases “surprisingly resilient” given the rapid price increase.
The WGC has also noted that “diversification” with “a reduction of U.S. assets” is one of the factors driving central bank gold buying. In other words, de-dollarization.
“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.”
Mike Maharrey is a journalist and market analyst for Money Metals with over a decade of experience in precious metals. He holds a BS in accounting from the University of Kentucky and a BA in journalism from the University of South Florida.
. 2022 was the highest level of net purchases on record, dating back to 1950, including since the suspension of dollar convertibility into gold in 1971. To put that into context, central bank gold reserves increased by an average of just 473 tonnes annually between 2010 and 2021.){kind=link}