Top 5 Central Banks Buying Gold — and Why
Gold has returned to the spotlight as one of the most sought-after reserve assets among central banks worldwide. In an era marked by inflation, financial instability, and shifting geopolitical alliances, central banks are seeking security and diversification beyond traditional holdings like the U.S. dollar and government bonds. Below are the five central banks leading the charge in gold purchases, along with the reasons behind their strategies.
1. 🇵🇱 Poland
Poland has emerged as one of the most aggressive gold buyers in recent years. The National Bank of Poland has openly declared that gold strengthens national independence and provides insurance against global uncertainty. By significantly expanding its gold reserves, Poland is ensuring it has a tangible, universally accepted asset that can support the zloty and financial system in times of stress.
Another motivation is geopolitical positioning. As a frontline EU and NATO member, Poland faces both security and economic challenges. Increasing gold reserves is seen as a way to reinforce confidence in its monetary system while signaling resilience to potential external shocks.
- Gold reserves (approx.): 229 tonnes
- Net purchases 2024: ~100 tonnes
2. 🇨🇳 China
China’s People’s Bank has been a consistent and significant gold buyer. For Beijing, the accumulation of gold serves as a strategic hedge against its massive holdings of U.S. Treasuries and the broader dominance of the dollar. By diversifying into gold, China is gradually reducing dependence on Western financial structures and increasing its room for maneuver in global finance.
China also views gold as a tool for bolstering international confidence. As it pushes the renminbi’s role in global trade and finance, gold reserves lend credibility to its currency. At the same time, buying gold signals to markets and geopolitical rivals that China is securing stable, non-political assets that cannot be frozen or sanctioned.
- Gold reserves (approx.): 2,000 tonnes
- Net purchases 2024: ~100 tonnes
3. 🇮🇳 India
The Reserve Bank of India has steadily added to its gold holdings to strengthen monetary stability and support its growing economy. Gold acts as a cushion against external vulnerabilities such as oil price swings, trade imbalances, or currency depreciation. In a country with a long cultural tradition of valuing gold, its accumulation also carries symbolic weight, reinforcing confidence in the central bank’s prudence.
Beyond culture and stability, India’s gold purchases reflect a strategic diversification similar to China’s. With global uncertainty and periodic capital outflows, India recognizes gold’s role as an anchor of trust. This helps sustain market credibility, attract investors, and ensure resilience against sudden financial shocks.
- Gold reserves (approx.): 780 tonnes
- Net purchases 2024: ~30 tonnes
4. 🇹🇷 Türkiye (Turkey)
Turkey’s central bank has often turned to gold as a stabilizing tool during periods of currency volatility. The lira has suffered sharp declines in recent years, and gold purchases help shore up the country’s reserves in an asset widely respected by citizens and investors alike. This provides a buffer in times when trust in paper assets weakens.
Additionally, Turkey uses gold as part of its broader financial strategy to reduce reliance on the dollar and euros. By holding more gold, Turkey can reassure markets that it maintains a durable safety net. Gold also serves a domestic political function, signaling to its population that the state is safeguarding wealth with a timeless, secure asset.
- Gold reserves (approx.): 550 tonnes
- Net purchases 2024: ~40 tonnes
5. 🇺🇿 Uzbekistan
Uzbekistan’s central bank has consistently been among the world’s top official gold buyers. For an economy in transition, gold represents a stable reserve asset that protects against fluctuations in energy revenues and export earnings. By steadily increasing holdings, Uzbekistan reduces its reliance on foreign currencies and strengthens confidence in its financial system.
The country is also a major gold producer, which makes it easier to accumulate reserves directly from domestic output. This strategy not only supports monetary stability but also keeps more national wealth within its borders. In a region often affected by economic volatility, gold is a key pillar of Uzbekistan’s financial security and independence.
- Gold reserves (approx.): 400 tonnes
- Net purchases 2024: ~50 tonnes
Why Central Banks Choose Gold
Across all these cases, the drivers are consistent: diversification away from the U.S. dollar, insurance against inflation, and protection against geopolitical risk. Gold cannot be printed, frozen, or defaulted upon, making it uniquely valuable in times of uncertainty. With more than 1,000 tonnes purchased globally in 2024 alone, the trend underscores that central banks increasingly see gold not as a relic, but as a foundation for financial resilience in the 21st century.