A new report from the World Gold Council suggests that due to increasing pessimism towards the US dollar, central banks around the world are expected to increase global gold reserves next year.
The survey shows that over 80% of respondents anticipate an increase in global gold reserves. Additionally, data indicates that approximately 30% of central banks, including 13% from developed economies, plan to increase their gold reserves in the coming year.
While emerging market banks remain optimistic about the future of gold reserves, 57% of central banks in developed economies currently share the same view, higher than the 38% in 2023.
At the same time, they are becoming increasingly pessimistic about the prospect of the US dollar’s share in global reserves – with 56% believing this share will decrease from the previous year’s 46%. Nearly two-thirds of central banks in emerging markets hold the same view.
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They are refocusing on gold for reasons including risk management, emergency plans for political and economic turmoil, utilizing its long-term value, liquidity, and as part of portfolio diversification.
In recent years, central banks around the world have been purchasing significant amounts of gold. For example, 1,037 tons in 2023, second only to 1,082 tons in 2022, ranking second.
