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Central banks worldwide have significantly increased their gold reserves, reaching a record 483 tonnes in the first half of 2024. This surge highlights a shift toward secure, value-storing assets amidst global economic uncertainty.
On September 2, macroeconomic outlet Kobeissi Letter reported that central banks globally bought 483 tonnes of gold by mid-2024, setting a new record. This figure represents a 5% increase from the previous high of 460 tonnes in the same period of 2023. In the second quarter of 2024 alone, central banks added 183 tonnes, up 6% from the previous year.
Major contributors to this gold-buying trend include the National Bank of Poland, the Reserve Bank of India, and the Central Bank of Turkey. In August, Poland’s central bank president Adam Glapinski announced plans to continue increasing gold reserves, aiming for gold to make up 20% of the bank’s total reserves.
Spencer Hakimian, founder of Tolou Capital Management, noted that countries like China, India, Russia, and Saudi Arabia are moving away from Western reserve assets, seeing gold as a stable and neutral alternative.
Tech entrepreneur Kim Dotcom predicted that a new gold-backed stablecoin from BRICS nations (Brazil, Russia, India, China, South Africa, and others) could further drive demand for gold, potentially destabilizing the U.S. dollar. He forecast that by 2030, 14% of global GDP could shift from the U.S. to other countries.
Gold has seen strong performance in 2024, rising 23% year-to-date, outperforming the S&P 500’s 18% gain. Meanwhile, Bitcoin has climbed 37% in 2024, though it has dipped 22% from its March peak.
Despite Bitcoin’s growth, central banks remain cautious about the relatively new asset class, continuing to favor gold for its stability and long-standing value.
