20 NOVEMBER 2025
Central Bank buying of gold has been running hot of late as policymakers look to protect themselves against inflation, fiat currency debasement and a general rise in geopolitical risk.
Despite this, gold remains a minority allocation within official reserves.
According to the IMF data, shown in the chart below, state ownership of gold reached approx. U$2.4trn in June, but this represents just 15% of total international reserves.
For context, foreign currency assets (mainly dollar and euro-denominated bonds) still make up the vast majority of the mix.
At the 1960s peak, around two-thirds of the official sector’s savings were held in gold.
Which suggests there is ample scope for Central Bank purchases of gold to continue.
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