The structural transformation in global central bank gold purchasing represents perhaps the most significant shift in the gold market since Bretton Woods. Central banks purchased a record 1,250 tonnes of gold in 2024, and H1 2025 data shows purchases running at an annualized pace of 1,500 tonnes — triple the 2010-2020 average.
This reflects a fundamental reassessment of reserve asset risk. The freezing of Russian reserves in 2022 demonstrated that sovereign bond holdings are not risk-free for all holders. According to a World Gold Council survey, 62% of central banks expect gold share of global reserves to increase over the next five years. The People Bank of China has been the most consistent buyer, with Poland targeting 20% gold allocation and India adding 77 tonnes in H1 2025.
At the current purchase rate of 1,500 tonnes annually, central banks are absorbing approximately 30% of annual mine production — a level of structural demand that makes a return to sub-$2,000 gold increasingly unlikely.
