(Mike Maharrey, Money Metals News Service) Central bank gold demand topped 1,000 tonnes for the third straight year in 2024.
To put that into perspective, central bank gold reserves increased by an average of just 473 tonnes annually between 2010 and 2021.
On net, central banks increased their gold holdings by 1,044.6 tonnes last year, according to data compiled by the World Gold Council. It was the 15th consecutive year of expanding gold reserves.
The World Gold Council said the increase in gold reserves last year was no surprise.
“But the continued strength of demand exceeded even our already lofty expectations.”
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).
Central banks likely added even more unreported gold. For instance, the People’s Bank of China quietly purchased over 100 tonnes of gold in October and November.
The WGC includes an estimate of “unreported” buying in its data, but likely understates the actual numbers.
Who Bought All This Gold?
The National Bank of Poland was the biggest buyer in 2024, adding 90 tonnes of gold to its reserves.
Last year, National Bank of Poland Governor Adam Glapiński indicated the central bank plans to increase its gold holdings to 20 percent of its reserves.
“This makes Poland a more credible country, we have a better standing in all ratings, we are a very serious partner, and we will continue to buy gold.”
The country currently holds about 18 percent of its reserves in gold.
The Polish central bank began aggressively increasing its gold reserve in 2021 when Glapiński announced a plan to buy 100 tons of the yellow metal. The National Bank of Poland reached that goal in the fall of 2023 and continued its buying spree.
When he announced the initial plan to expand its gold reserves, Glapiński said holding gold was a matter of financial security and stability.
“Gold will retain its value even when someone cuts off the power to the global financial system, destroying traditional assets based on electronic accounting records. Of course, we do not assume that this will happen. But as the saying goes – forewarned is always insured. And the central bank is required to be prepared for even the most unfavorable circumstances. That is why we see a special place for gold in our foreign exchange management process.”
Glapiński also pointed out that “Gold is free from credit risk and cannot be devalued by any country’s economic policy. Besides, it is extremely durable, virtually indestructible.”
Turkey ranked second in gold buying among central banks last year, expanding its reserves by 74.8 tonnes.
The Turkish central bank sold a significant amount of gold in 2023 in the midst of an inflationary crisis. This created a surge in domestic demand for gold as Turks rushed to shield themselves from a depreciating lira. To manage gold demand and reduce the strain on its current account deficit, the Turkish government imposed restrictions on gold imports, and the Turkish central bank released gold from its reserves into the local market to alleviate tight supply conditions.
The Central Bank of Turkey returned to buying last year, albeit at a slower rate than before the crisis.
The Reserve Bank of India added the third-largest amount of gold to its reserves in 2024, purchasing 73 tonnes. The RBI added to its gold holdings every month except for December. At the end of 2024, the RBI gold reserves totaled 876 tonnes, making up 11 percent of total reserves.
An Indian economist told the Times of India that the push to accumulate gold was based on both political and economic reasons. He said that the “reliability” of the U.S. dollar has “diminished.” He noted the “noticeable decline” in the confidence in U.S. dollar assets.
Another economist told the Times, “It makes a lot of sense (to invest in gold), given the increased volatility in the FX market, elevated interest rates in the U.S., and, of course, also as the central banks in each economy would like to diversify the asset classes in which they are parking their reserves.”
India recently transported 100 tonnes of its gold from the UK back into India.
The People’s Bank of China publicly returned to the table in November after a 6-month pause with a 5-tonne increase to its official gold reserves.
China was the biggest central bank gold buyer in 2023 but stopped announcing increases to its reserves in May.
The Chinese central bank was the biggest buyer in December, officially adding 10 tonnes to its holdings.
Even with the pause in reporting, the People’s Bank of China still added 44 tonnes of gold to its official reserves.
China has a history of adding to publicly stated reserves and then going silent.
The People’s Bank of China accumulated 1,448 tons of gold between 2002 and 2019 and then reported nothing for more than two years before resuming reporting in the fall of 2022. Many speculate that the Chinese continued to add gold to its holdings off the books during those silent years.
As already mentioned, China almost certainly has much more gold than it admits. Jan Nieuwenhuijs reported that the People’s Bank of China secretly bought large amounts of gold, even as official buying was on pause. The renowned Money Metals researcher has shown that the Chinese central bank covertly purchases gold in the London Bullion market through bullion banks.
Several other Eastern European countries joined Poland in expanding their gold reserves.
The Czech National Bank bought gold at a steady pace throughout the year, adding 20 tonnes of gold to its holdings. The Czech central bank now holds just over 50 tonnes of gold, a threefold increase since the end of 2023.
The Central Bank of Hungary increased its gold reserves by 16 tonnes with one large purchase in September.
The National Bank of Serbia (8 tonnes) and the National Bank of Georgia (7 tonnes) were the other two notable buyers in the region.
Another notable buyer was the State Oil Fund of Azerbaijan. The country’s sovereign wealth fund added 25 tonnes of gold in the first three quarters of 2024. As of the end of the year, Q4 data was unavailable. At the end of Q3, gold accounted for just under 18 percent of the fund’s investment portfolio.
The following central banks also added at least 1 tonne of gold to their reserves last year:
- Iraq – 20 tonnes
- Kyrgyz Republic – 17 tonnes
- Uzbekistan – 11 tonnes
- Ghana – 11 tonnes
- Qatar – 10 tonnes
- Oman – 4 tonnes
- Russia – 3 tonnes
- Taiwan – 2 tonnes
- Zimbabwe – 1 tonne
- UAE – 1 tonne
The Philippines was the biggest seller, shrinking its gold reserves by 30 tonnes between March and August. Officials say the sale was in response to rising gold prices and was part of “an active management strategy around its gold reserves.”
The central bank resumed buying gold in September and October.
Kazakhstan ended the year with a 10-tonne decline in gold reserves. It is not uncommon for banks that buy from domestic production – such as Uzbekistan and Kazakhstan – to switch between buying and selling.
Singapore shrank its gold reserves by 10 tonnes.
All of this data is subject to change. The World Gold Council noted, “Disclosures by central banks often come with a lag. In addition, other official institutions, such as sovereign wealth funds, rarely ever publish their holdings.”
The World Gold Council said despite 15 straight years of increasing global gold reserves, “their hunger for gold shows no sign of being quelled.”
“Geopolitical and economic uncertainty remains high in 2025, and it seems as likely as ever that central banks will once again turn to gold as a stable strategic asset.”
Mike Maharrey is a journalist and market analyst for MoneyMetals.com 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.
