Central banks worldwide have bought, on average, twice as much gold this decade as in the previous one, according to the World Gold Council (WGC), the gold industry's trade association. Today, central banks are a significant factor in overall gold demand.
Falling gold demand as central bank buying rises
This became especially clear in recent months, as gold lost appeal for investors amid expectations of Fed rate hikes. Global gold demand fell by 15 percent year-on-year last quarter, according to the "Gold Demand Trends Q2 2026" report, while demand from central banks rose by 62 percent.
81 percent of central banks hold gold in 2026
According to a study published in late July 2026 by the Official Monetary and Financial Institutions Forum (OMFIF), a research organization focused on central bank strategy, economic policy, and public-sector investment, 81 percent of all central banks now hold gold. That's up from 71 percent in 2025 — a 14 percent increase within a single year.
Central bank gold reserves hit new highs
This naturally also affects overall holdings in central bank vaults: global gold reserves now stand at 36,600 tonnes (as of early July 2026). For years, central banks have accounted for a good fifth of total gold demand — including investment gold, gold for industrial and medical use, and gold for global jewelry production.
From the gold standard to strategic diversification
In the era of the gold standard, gold served mainly to safeguard and stabilize the global monetary order. Today, it's factors such as portfolio diversification, currency independence, and confidence in the global financial system that, from central banks' perspective, favor a strategic, long-term allocation to the precious metal.
No counterparty risk makes gold a unique asset
Unlike almost all other asset classes, gold carries no counterparty risk — a quality that makes it a unique diversification tool.