1. Record Gold Purchases
2. Major Central Bank Buyers
3. Increasing Importance of Gold Amid Currency Instability

Central banks around the world have been stocking up their gold reserves at record levels this year, shifting to store of value assets.

Record Gold Purchases

In a post on X on Sept. 2, macroeconomics outlet, the Kobeissi Letter reported that global net gold purchases by central banks reached 483 tonnes in the first half of 2024, the most on record. This figure is 5% higher than the previous record of 460 tonnes set in the first half of 2023. In Q2 2024, central banks bought 183 tonnes of gold, marking a 6% increase year-over-year.

Major Central Bank Buyers

The National Bank of Poland, the Reserve Bank of India, and the Central Bank of Turkey were the largest central bank buyers of the precious metal for the period. In late August, the president of the National Bank of Poland, Adam Glapinski, revealed that the bank would continue to buy gold, aiming for the asset to make up 20% of its reserves.

Increasing Importance of Gold Amid Currency Instability

Tolou Capital Management founder, Spencer Hakimian, commented that China, India, Russia, and Saudi Arabia “no longer trust owning Western reserve assets,” before adding “Gold is the only neutral and non-volatile reserve asset.” Some analysts believe that a new gold-backed stablecoin from the BRICS nations will increase the demand for gold and result in dollar instability.

Central banks continue to accumulate gold actively, reflecting an increased distrust towards traditional currency reserves. Despite this, Bitcoin still shows high returns, albeit volatile.