As of July 2021, central banks held 35,527 tonnes of gold, representing approximately 17.6% of the above-ground gold stock. Recent years have only reinforced the strategic importance of gold in a central bank portfolio. From the 2008 Global Financial Crisis (GFC) to the disruptions wrought by the COVID-19 pandemic, gold has provided a buffer against financial instability. Geopolitical uncertainty and a prolonged low interest rate environment have also added to gold’s strategic importance. As these factors continue to weigh on reserve management strategies, it makes sense that so many central banks have turned to gold.
Sectors: Central banks/official inst.