Why Central Banks Are Buying Gold at Record Levels
Updated: December 2025
The Big Picture
Central banks have been net buyers of gold for 15+ consecutive years, with 2022-2024 setting records. In 2024 alone, they purchased over 1,000 tons—the equivalent of $70+ billion.
Top Reasons for the Buying Spree
1. De-Dollarization
Countries are reducing dependence on the US dollar as the world's reserve currency.
- • BRICS nations actively seeking dollar alternatives
- • China settling more trade in yuan
- • Gold provides neutral reserve asset
2. Sanctions Hedging
After the West froze $300B+ of Russian assets in 2022, other nations took notice.
- • Gold can't be frozen by foreign governments
- • Physical possession = sovereignty
- • Insurance against geopolitical risk
3. Inflation Protection
Central banks themselves caused inflation through money printing—and now want protection.
- • Gold preserves purchasing power over centuries
- • Hedge against their own monetary policies
- • Balance sheet diversification
4. Reserve Diversification
Reducing concentration in any single currency or asset.
- • Gold has no counterparty risk
- • Not another country's liability
- • Universally accepted value
Top Buying Countries
| Country | Recent Additions | Total Holdings |
|---|---|---|
| China | 300+ tons (2022-2024) | ~2,300 tons |
| Poland | 130+ tons (2023-2024) | ~420 tons |
| Turkey | 100+ tons (2024) | ~590 tons |
| India | Consistent buyer | ~850 tons |
| Singapore | 75+ tons (2023-2024) | ~230 tons |
For context: US holds ~8,100 tons; Germany ~3,400 tons
What This Means for Individual Investors
- → Sustained demand floor: Central bank buying provides consistent baseline demand
- → Smart money signal: If central banks are buying, maybe you should too
- → Long-term bullish: This isn't speculation—it's strategic accumulation
- → Validation: Gold remains the ultimate reserve asset, even in 2025
The Takeaway
When the institutions that print money are buying gold to protect themselves from money printing, that tells you something. Individual investors can follow the same logic with a Gold IRA or physical gold.