Strongest central bank gold purchases year-to-date

In October 2024, central banks’ gold-buying frenzy, which had subsided somewhat in recent months, picked up again considerably – so significantly that net inflows of gold reserves were more than twice as high as the past twelve months’ average. In total, central banks bought 60 tonnes more gold than they sold. According to the latest World Gold Council data, global gold reserves increased by 694 tonnes over the first ten months of this year, in line with the previous record year of 2022. However, it remains to be seen whether net purchases will reach the 1,000 tonne mark again by the end of 2024.

India quintupled national gold reserve purchases in 2024

Within the first three quarters of this year, the Indian central bank alone recorded net gold purchases of 77 tonnes, followed by the Turkish central bank with 72 tonnes, bringing the share of gold reserves in total foreign currency reserves to 34 per cent. The third-largest gold buyer in 2024 is the Polish central bank with 69 tonnes. China, which has established itself as the largest buyer of gold in recent years, comes in fourth with just under 30 tonnes.

Strategic importance of gold in central bank portfolios remains high

The ‘2024 Central Bank Gold Reserves Survey’ commissioned by the World Gold Council not only revealed that a majority of 69 per cent of the central banks surveyed expect further – albeit moderate – net gold reserve purchases in the future, but also cited the main reasons for the allocation of gold to foreign currency reserves. They emphasised the role of the precious metal as a strategic asset for reducing portfolio risks and diversifying foreign currency reserves. 83 per cent of central banks in industrialised countries also rely on its traditional function as an inflation hedge and safe haven in times of crisis. Among the central banks surveyed in emerging markets, this figure was as high as 90 per cent.