10
www.prioritygold.com
21 https://www.reuters.com/markets/commodities/central-banks-bought-most-gold-since-1967-last-year-wgc-
says-2023-0131/
22 https://www.gold.org/goldhub/research/gold-demand-trends/gold-demand-trends-full-year-2023/central-banks
23 https://www.gold.org/goldhub/research/gold-demand-trends/gold-demand-trends-q3-2023/central-banks
24 https://www.gold.org/goldhub/gold-focus/2023/03/you-asked-we-answered-history-context-and-outlook-central-bank-gold
What have central banks been
doing in response to soaring
interest rates, sinking consumer
sentiment, global real estate
woes, and wars on multiple
continents? They have been
adding to their gold reserves at
record levels.
In 2022, central banks added
1,136 tonnes of gold to their
stockpiles or about $70 billion
worth of gold, the highest level
since 1950. According to Reuters,
it reflects a significant shift in
attitude from the 1990’s and
2000’s when central banks were
selling gold.21
According to the World Gold Council, through Q3 of 2023, central banks bought another 800 tonnes
of gold — 337 tonnes were acquired in Q3 alone making it the second highest third quarter on record
and building upon record setting gold demand for the first half of the year.22
The buying spree has been fueled by the People’s Bank of China, the National Bank of Poland, Turkey’s
central bank and the central banks of India, Uzbekistan, the Czech Republic, Singapore, Qatar, Russia,
the Philippines, and the Kyrgyz Republic.23
The World Gold Council says Central banks hold gold to diversify their reserves. Gold also tends to
retain its value against volatile currencies, guard against geopolitical chaos — and it’s highly liquid:
“It [gold] has no political risk, it can’t be de-based and it can’t be talked down in a currency war of
words. Our comprehensive central bank surveys confirm that gold is an important reserve asset
– valued for its performance in times of crisis, its long-term store of value and lack of default
risk. And it confirms that central bankers expect further growth in global gold reserves.”24
VI. What Central Banks Are Telling Us About Gold