24 APRIL 2025
This chart illustrates the historical changes in Central Bank gold reserves and highlights a significant decline between the 1970s and the early 2000s, followed by a strong resurgence in recent years.
Since the 2010s, sovereign states have returned as net buyers of gold with factors such as geopolitical unrest and the need for dollar diversification increasing bullion’s appeal as a reserve asset.
Notably, in 2022 monetary authorities collectively purchased over 1,000 metric tonnes of gold; their largest acquisition of bullion since the 1950s.
Central Bank demand has remained strong ever since and should remain so given the prevailing macro backdrop. This suggests international gold reserves could eventually revisit their 1960s high.
This presents a bullish long-term outlook for gold, even if it experiences a meaningful price correction nearer-term.
The content of this communication is for information purposes only. Bentley Reid believes that, at the time of publication, the views expressed and opinions given are correct but cannot guarantee replication of depicted performance. Viewers intending to take action based upon the content of this communication should first consult with the professional who advises them on their financial affairs. Capital invested will be at risk, and you may get back less than you invest. The past is not a reliable indicator of future performance. Neither the publisher nor any of its subsidiaries or connected parties accepts responsibility for any direct or indirect loss suffered by a recipient as a result of any action or inaction, in reliance upon the content of this communication.
Key trends in portfolio management
Is India Leaving the “Fragile EM” Era Behind?
Discussion on the unrest in the Middle East
