Why are central banks buying so much gold?

Gold is not only popular with private buyers. Central banks, the institutions that manage a country's money, have been buying large amounts of gold for years. Why?

The numbers

According to the World Gold Council, central banks worldwide bought 863 tonnes of gold in 2025. In the second quarter of 2026 they added another 289 tonnes, a record for that quarter. The biggest buyer was the National Bank of Poland. China's central bank bought 23 tonnes in September 2026 and has added gold for 23 months in a row; its reserves now stand at 2,410 tonnes.

Reason 1: no counterparty risk

Government bonds and foreign currencies depend on the promise of another government. Gold does not: it is the value itself. When countries trust each other less, that matters more.

Reason 2: diversification

Many central banks hold a lot of US dollars in reserve. Buying gold spreads their risk. Gold often behaves differently from shares, bonds and currencies.

Reason 3: crisis resilience

Gold has kept its value for centuries, through wars, inflation and financial crises. The Dutch central bank (DNB) calls gold 'the ultimate anchor of confidence'. In 2026 DNB moved 86 tonnes of gold from New York and Ottawa to London so it can be used quickly in a crisis. The Netherlands owns 612.4 tonnes in total.

Will it continue?

The World Gold Council's 2026 survey of central banks found that 89% expect global gold reserves to keep growing over the next year. A record 45% plan to increase their own gold holdings.

What does this mean for you?

The reasons central banks have apply on a small scale to private buyers too: gold is yours, it spreads risk, and it has a long history as a store of value. Like central banks, you can choose recognised bars that meet LBMA standards, such as those from PAMP and Valcambi.

Sources: World Gold Council, Gold Demand Trends and Central Bank Gold Reserves Survey 2026; World Gold Council, China gold market update (15 October 2026); De Nederlandsche Bank, press release 2 September 2026.