Central banks have accumulated over 1,000 tons of gold in each of the last three years, up significantly from the 400-500 tons average over the preceding decade. This marked acceleration in the pace of accumulation has occurred against a backdrop of geopolitical and economic uncertainty, which has clouded the outlook for reserve managers and investors alike
The World Gold Council‘s 2025 Central Bank Gold Reserves (CBGR) survey highlighted the continued importance of gold reserve management in these challenging times. Similar to findings from previous surveys, central banks continue to hold favorable expectations on gold. Respondents overwhelmingly believe that global central bank gold reserves will increase over the next 12 months.
U.S. dollar holdings to decline as share of other currencies rises
This year, a record 43 percent of respondents believe that their own gold reserves will also increase over the same period. Interestingly, none of our respondents anticipate a decline in their gold reserves. Gold’s performance during times of crisis, portfolio diversification and inflation hedging are some key themes driving plans to accumulate more gold over the coming year.
In addition, gold’s unique characteristics and role as a strategic asset continue to be valued by central banks: its performance in times of crisis, ability to act as a store of value, and its role as an effective diversifier continue to be cited as key reasons for an allocation to gold.
The survey also revealed that the majority of respondents see moderate or significantly lower U.S. dollar holdings within global reserves over the next five years. Respondents also believe that the share of other currencies, such as the euro and renminbi, as well as gold, will increase over the same period.
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Bank of England remains most popular vaulting location
In addition, the World Gold Council noted that the Bank of England remains the most popular vaulting location for gold reserves amongst respondents. A significantly higher percentage of respondents reported some domestic storage of gold reserves this year than they did last year, while just 7 percent indicated that they plan to increase domestic storage of gold reserves over the next 12 months.
Ongoing economic and geopolitical uncertainty continues to weigh on reserve managers, as this year’s findings highlight. Concerns over the inflation outlook and potential trade conflicts, particularly amongst EMDE banks, show that diversification and risk mitigation continue to be key drivers of strategic reserve management decisions. While there are divergences between advanced economies and EMDE central banks on some aspects, they share a common confidence in gold’s role as a reliable store of wealth and a key component of long-term reserve management strategies.
As the world becomes increasingly volatile and unpredictable, gold’s safety, liquidity and return characteristics – the three key investment objectives for central banks – have risen in importance. The trends uncovered suggest that central banks continue to recognize the benefits of an allocation to gold, and indicate that their demand for gold will likely remain healthy for the foreseeable future.
