Central Banks Are Buying Gold at Record Pace

Central Banks Are Buying Gold at Record Pace — 2025 Rankings and 2026 Outlook

Author: Paweł Kucharzak, Precious Metals Expert, GoldInvest24 | May 19, 2026

Reading time: 12 minutes | approx. 2,800 words | Updated: May 19, 2026

In 2025, central banks worldwide purchased 863 tonnes of gold — the fourth consecutive year in which official sector demand far exceeded historical averages. In the first quarter of 2026, the pace shows no sign of slowing — estimated net purchases reached 244 tonnes, and the World Gold Council's full-year forecast stands at 700 to 900 tonnes. The United States remains the world's largest gold holder at 8,133 tonnes, while emerging-market central banks are rapidly closing the gap.

It is no coincidence that the gold price in May 2026 exceeds $4,500 per ounce, with the January all-time high reaching $5,405. Central banks — institutions managing trillions of dollars in foreign reserves — are consistently increasing the gold share in their portfolios. Why? Which countries are buying the most? And what does this mean for the precious metals market? This article presents a comprehensive analysis based on data from the World Gold Council, the IMF, and individual central banks.

Why Do Central Banks Buy Gold?

Gold serves a function in currency reserves that no fiat currency can fulfil — it is an asset free from counterparty risk. Unlike government bonds or bank deposits, physical gold cannot go bankrupt, be frozen by sanctions, or lose value due to another government's decisions. It was precisely this characteristic that prompted many central banks to diversify their assets after the freezing of Russian foreign reserves in 2022.

According to the World Gold Council's annual survey of reserve managers, the primary motivations for gold purchases include: long-term inflation hedging, portfolio diversification, absence of issuer default risk, gold's historical role during crises, and growing geopolitical uncertainty. In 2025, 29% of central banks declared their intention to increase gold reserves within the next 12 months — the highest percentage since the survey began.

Central Bank Gold Purchases Ranking — 2025

The year 2025 brought 863 tonnes of net purchases — a 21% decline from the record-setting 2024 (1,045 tonnes) but still significantly above the 2010–2021 average of 400–500 tonnes annually. Here is the ranking of the largest buyers:

Rank	Country	Net Purchases 2025 (tonnes)	Reserves End 2025 (tonnes)	Context
1	Poland	102	~550	Largest buyer in 2025
2	Kazakhstan	57	~310	Record year, purchases from domestic production
3	Brazil	43	~172	Market re-entry after 4-year hiatus
4	China (PBOC)	27	2,306	17 consecutive months of buying (through March 2026)
5	Turkey	~22	~614	Net seller in 2026 due to lira crisis
6	Czech Republic (CNB)	20	~72	Target: 100 tonnes by 2028
7	India (RBI)	~15	~880	Repatriation of 274 tonnes (2023–2025)

Source: World Gold Council, Gold Demand Trends Full Year 2025, IMF IFS data. Approximate values — some central banks report with a delay.

"The United States holds 8,133 tonnes of gold — more than the next three countries combined. Yet the real story of 2022–2026 is that emerging-market central banks are buying at unprecedented volumes, reshaping the global reserve landscape. When institutions managing trillions go all-in on gold, it is the strongest structural signal for precious metals in decades."
— Paweł Kucharzak, GoldInvest24

The United States — 8,133 Tonnes and the World's Largest Stockpile

The United States holds by far the largest official gold reserves in the world — 8,133.5 tonnes, stored primarily at Fort Knox, the Federal Reserve Bank of New York, and the US Mint facilities in Denver and West Point. Gold accounts for approximately 76% of US foreign reserves, the highest ratio among G7 nations. Unlike many emerging-market central banks, the US has not actively purchased gold since the 1970s — its stockpile has remained essentially unchanged for over five decades.

The stability of the US gold position reflects a fundamentally different strategy: while countries like China and India are accumulating gold to diversify away from dollar-denominated assets, the United States already holds the ultimate reserve. The Federal Reserve Bank of New York also serves as a custodian for gold belonging to approximately 36 foreign governments and international organisations, holding roughly 6,000 tonnes of foreign gold in its vault — making it the world's largest known repository of monetary gold.

The Bank of England — the World's Second-Largest Gold Custodian

The Bank of England holds approximately 310 tonnes of its own gold reserves, but its significance extends far beyond its domestic holdings. The Bank's vaults beneath Threadneedle Street in London store an estimated 4,700 tonnes of gold belonging to other central banks and commercial institutions — making it the second-largest custodian of monetary gold after the New York Fed.

London's role as the global hub for over-the-counter (OTC) gold trading means that the Bank of England's vaults are central to the functioning of the international gold market. In recent years, several central banks — including India and Germany — have repatriated portions of their gold from London, a trend that underscores the growing importance of sovereign control over physical reserves. The London Bullion Market Association (LBMA), headquartered in London, sets the global standard for gold bar quality and the twice-daily LBMA Gold Price benchmark.

China — Official Numbers vs. Reality

The People's Bank of China (PBOC) officially added 27 tonnes of gold to its reserves in 2025, continuing a streak of 17 consecutive months of purchases (through March 2026). Official reserves at the end of Q1 2026 stood at 2,313 tonnes, making China the sixth-largest gold holder worldwide.

However, many analysts estimate that China's actual reserves may be substantially higher. Estimates reach as high as 5,400 tonnes, which would rank second globally behind the United States (8,133 tonnes). China imports hundreds of tonnes of gold annually through Hong Kong and Shanghai, and some of these purchases may flow directly into state reserves without being reported to the IMF.

The strategic context is clear — Beijing is consistently reducing the share of US Treasuries in its reserves while increasing its gold position. The gold share rose from approximately 3% in 2019 to around 9% in 2026, but remains far below the European average (over 50%).

India — Repatriation and a 20% Gold Target

The Reserve Bank of India (RBI) is systematically increasing its gold reserves — at the end of Q1 2026, they stood at 880.5 tonnes. The value of India's gold reserves exceeded $108 billion in October 2025, a $31 billion increase in a single fiscal year.

The most notable trend is massive gold repatriation. Between March 2023 and September 2025, India brought back approximately 274 tonnes of gold from the vaults of the Bank of England and the Bank for International Settlements (BIS). The gold share in India's foreign reserves rose from 7% a decade ago to approximately 15% in 2026, with analysts predicting a target of 20%.

Top 10 Largest Gold Reserves Worldwide — May 2026

Rank	Country / Institution	Reserves (tonnes)	% of Foreign Reserves	Trend
1	United States	8,133	~76%	Stable since the 1970s
2	Germany	3,350	~74%	Stable, repatriation completed 2017
3	Italy	2,452	~70%	Stable
4	France	2,437	~67%	Stable
5	Russia	2,336	~30%	Growing — purchases from domestic producers
6	China	2,313	~9%	Strong growth — 17 consecutive buying months
7	Switzerland	1,040	~8%	Stable
8	India	880	~15%	Growing + massive repatriation
9	Japan	846	~5%	Stable
10	Netherlands	612	~63%	Stable
14	United Kingdom	310	~13%	Stable — also custodian of ~4,700 tonnes of foreign gold

Source: World Gold Council, IMF IFS, Q1 2026 data. Reserves in metric tonnes.

What Is Driving the Buying Wave — Four Key Factors

1. The Freezing of Russian Reserves — a Turning Point

In February 2022, Western countries froze approximately $300 billion in Russian foreign reserves denominated in dollars, euros, and pounds. For many central banks — particularly in Asia, the Middle East, and Latin America — this was a signal that foreign currency reserves could be weaponised. Gold, stored in domestic vaults, is immune to such measures.

2. De-dollarisation and Reserve Structure Shifts

The US dollar's share of global foreign reserves fell from 72% in 2000 to approximately 57% in 2025 (IMF COFER data). Central banks in BRICS nations and the Global South are actively seeking alternatives — and gold is the only reserve asset that is not simultaneously a liability of another state.

3. Inflation and Real Interest Rates

After a decade of ultra-low interest rates and the 2021–2024 inflation wave, central banks have reassessed gold's role as a hedge against purchasing power erosion. In an environment where real interest rates (adjusted for inflation) often remain negative, gold preserves value better than many government bonds.

4. Geopolitical Uncertainty

Wars in Ukraine and the Middle East, tensions in the South China Sea, US-China technology rivalry — each of these factors strengthens the motivation to hold an asset that does not depend on the stability of any particular political or financial system.

2026 Outlook — How Much Gold Will Central Banks Buy?

The World Gold Council forecasts official sector purchases of 700 to 900 tonnes in 2026. The first quarter confirms this trend — an estimated 244 tonnes of net purchases matches a pace close to the record-setting 2024. J.P. Morgan projects an average of 585 tonnes per quarter.

Key buyers in 2026 remain China (continuing its buying streak), India, and Eastern European central banks, along with new entrants such as Indonesia and Malaysia, which have returned to the market after a multi-year hiatus. Meanwhile, major Western central banks — including the Federal Reserve, the Bank of England, and the Bundesbank — maintain their holdings at stable levels, signalling that gold remains the cornerstone of reserve policy even without active accumulation.

"At current prices of $4,500–$5,400 per ounce, central banks are buying gold at a higher cost than at any point in history — and they show no intention of stopping. This is the strongest structural signal for the precious metals market in decades."
— Paweł Kucharzak, GoldInvest24

Turkey — the Exception That Proves the Rule

Turkey stands as an interesting exception to the global trend. While the Turkish central bank purchased approximately 22 tonnes of gold in 2025, the situation reversed in 2026. Within just two weeks, Turkish reserves dropped by more than 118 tonnes — Ankara was selling gold to defend the lira amid a currency crisis intensified by regional geopolitical tensions.

The Turkish case illustrates that gold in central bank reserves serves a dual function — it is both a hedge for difficult times and a liquidity reserve that can be mobilised during crises. This is precisely why central banks buy gold during periods of stability — to have reserves to draw upon during turbulence.

Impact on the Gold Price

Official sector demand accounts for approximately 25–30% of total global gold demand. In 2024, when central banks purchased a record 1,045 tonnes, the gold price rose by more than 25%, reaching successive record highs. In January 2026, the gold price hit an all-time high of $5,405 per ounce.

The World Gold Council and J.P. Morgan identify central bank demand as one of the key structural factors sustaining the gold price at historically elevated levels. J.P. Morgan's Q4 2026 forecast is approximately $5,000 per ounce, with a possible move above $6,000 over the longer term.

What Does This Mean for Precious Metals Buyers?

The fact that institutions managing trillions of dollars are consistently increasing their gold positions is a significant market signal. Central banks make reserve allocation decisions based on multi-year strategies. Their unequivocal move towards gold signals that systemic risk in the global financial system remains elevated, the US dollar is losing its position as the sole safe reserve component, and gold as a counterparty-risk-free asset is gaining importance.

For buyers of gold bullion bars and gold investment coins, this means that structural price support from the official sector is likely to persist for years to come.

Frequently Asked Questions

How much gold do central banks buy each year?

Over the past four years (2022–2025), central banks purchased an average of 950–1,050 tonnes annually. By comparison, the 2010–2021 average was 400–500 tonnes. In 2025, net purchases totalled 863 tonnes, and the forecast for 2026 is 700–900 tonnes.

Which country buys the most gold?

In 2025, the largest net buyers among central banks were Kazakhstan (57 tonnes), Brazil (43 tonnes), China (27 tonnes), and Turkey (~22 tonnes). Total official sector purchases reached 863 tonnes. Emerging-market central banks account for the vast majority of new buying.

Why do central banks buy gold instead of dollars?

Gold is the only reserve asset free from counterparty risk — it cannot go bankrupt, be frozen by sanctions, or lose value due to another government's decisions. After the freezing of Russian foreign reserves in 2022, many central banks accelerated their diversification towards gold.

How much gold does the United States hold?

The United States holds 8,133.5 tonnes of gold — by far the largest stockpile in the world, accounting for approximately 76% of US foreign reserves. The gold is stored primarily at Fort Knox, the Federal Reserve Bank of New York, and US Mint facilities in Denver and West Point.

What role does the Bank of England play in the gold market?

The Bank of England holds approximately 310 tonnes of its own gold, but its vaults beneath London store an estimated 4,700 tonnes belonging to other central banks and institutions — making it the world's second-largest custodian of monetary gold after the New York Fed.

Do central bank purchases affect the gold price?

Yes — official sector demand accounts for approximately 25–30% of global gold demand and is considered one of the key factors sustaining the price at historically high levels.

How much gold does China really have?

Officially, the PBOC reports 2,313 tonnes (Q1 2026). However, independent analysts estimate that actual reserves may reach as high as 5,400 tonnes — which would rank second globally behind the US.

Will central banks continue buying gold in 2027?

All available data suggests they will. The World Gold Council's 2025 survey shows that 29% of central banks plan to increase their gold reserves within the next 12 months — the highest percentage since the survey began.

Buy Precious Metals at GoldInvest24

If you are interested in the precious metals market, GoldInvest24 offers a wide range of bullion products from accredited refineries and mints — including products from the same manufacturers from whom central banks source their gold.

• Gold Bullion Bars — Argor-Heraeus, PAMP, Heraeus, Valcambi
• Gold Investment Coins — Krugerrand, Maple Leaf, Vienna Philharmonic
• Silver Bullion Bars — Heraeus, Argor, PAMP
• Silver Investment Coins — Britannia, Maple Leaf, Kookaburra

Current precious metals prices: Precious Metals Prices — Gold, Silver, Platinum, Palladium