Why Central Banks Are Buying Record Amounts of Gold in 2025

If you’ve noticed headlines about central banks buying gold at record levels, you’re witnessing one of the most significant financial shifts of our generation. In 2025, institutions like the People’s Bank of China, Central Bank of Russia, and Monetary Authority of Singapore are accelerating their gold purchases — not as a temporary hedge, but as a long-term strategic realignment of global reserves.

At Metal Bullion, we track central bank activity because it signals where smart money is moving. When central banks are buying gold, it’s a powerful endorsement of gold’s role as the ultimate reserve asset. In this guide, you’ll learn:

• The top 5 reasons central banks are buying gold in 2025
• Which countries are buying the most — and why
• How this impacts you as an individual investor
• Which gold products mirror central bank strategy (like 1 Kilo Gold Bars or Valcambi CombiBars)
• What history tells us about central bank buying cycles — and what comes next

Let’s decode the global gold rush — and what it means for your portfolio.

Reason #1 Central Banks Are Buying Gold: De-Dollarization and BRICS Expansion

The most powerful driver behind central banks buying gold in 2025 is the accelerating move away from the U.S. dollar. The BRICS alliance (Brazil, Russia, India, China, South Africa — now expanding to include Saudi Arabia, UAE, Iran, and others) is actively building alternative financial systems — and gold is their anchor.

Why It Matters:

• The dollar’s share of global reserves has fallen from 71% in 2000 to 58% in 2024 (IMF COFER data).
• BRICS nations now hold over 4,000 tons of gold — and are adding 1,000+ tons annually.
• Gold provides neutrality — no single country controls it.

Top Buyers in 2025:

• China: Added 225+ tons in 2024, continuing into 2025. Official reserves now exceed 2,250 tons.
• Poland: Surprised markets by adding 130 tons in 2023–2024 — now buying more in 2025.
• India: Consistently among top 3 buyers — added 180 tons in 2024.

What This Means for You: If central banks are buying gold to reduce dollar exposure, you should consider doing the same. Start with PAMP Suisse Gold Bars or Valcambi Fractional Gold for flexibility.

Reason #2 Central Banks Are Buying Gold: Geopolitical Risk and Sanctions Protection

After Russia’s invasion of Ukraine, Western nations froze $300 billion of Russian central bank assets held in euros and dollars. The lesson? Fiat reserves held abroad are vulnerable. Gold held at home is not.

How Central Banks Are Responding:

• Repatriating Gold: Germany, Netherlands, and Italy have brought gold home from New York and London vaults.
• Buying Locally: China buys domestically mined gold. Turkey buys from local jewelers.
• Avoiding Western Systems: Settlements in yuan, rupees, or dirhams — backed by gold.

2025 Hotspots Driving Demand:

• Middle East tensions (Israel-Iran, Red Sea)
• Taiwan Strait and South China Sea
• U.S. election uncertainty and policy shifts

Smart Investor Move: Store your gold securely at home or in a private non-bank vault. → How to Store Gold & Silver at Home

Reason #3 Central Banks Are Buying Gold: Inflation and Currency Debasement

Despite rate hikes, inflation remains sticky in 2025. Central banks know that gold has preserved purchasing power for 5,000 years — while fiat currencies average a 50-year lifespan.

Data Point: The U.S. dollar has lost 96% of its purchasing power since 1913. Gold’s price has risen to compensate — from $20/oz to $2,300/oz.

Emerging Market Focus:

• Turkey: Facing 70%+ inflation, its central bank holds 650+ tons of gold — up from 116 tons in 2017.
• Argentina: After peso collapse, central bank increased gold reserves by 40% in 2024.
• Nigeria: Diversifying from naira, added 24 tons in 2024.

Your Protection Strategy: Allocate 5–20% of your portfolio to physical gold. → How Much Should You Invest in Precious Metals?

Reason #4 Central Banks Are Buying Gold: Portfolio Diversification and Stability

Even stable, developed economies are increasing gold allocations. Why? Because gold reduces portfolio volatility and performs during crises.

Key Stats:

• Switzerland holds 60% of reserves in gold.
• Germany holds 3,350+ tons — second only to the U.S.
• Poland’s central bank president stated: “Gold is the bedrock of stability in turbulent times.”

Academic Backing: A 2024 study by the World Gold Council found portfolios with 5–10% gold had 15% lower volatility and higher risk-adjusted returns over 20 years.

Copy Central Bank Strategy:

• Large Bars for Efficiency: 1 Kilo Italpreziosi Cast Gold Bar — lowest premium per ounce
• Fractional for Liquidity: 100 x 1g Valcambi CombiBar — break off 1g pieces as needed
• Coins for Recognizability: American Gold Eagle — globally accepted

Reason #5 Central Banks Are Buying Gold: Preparing for a Multipolar Financial System

The era of a single global reserve currency (the USD) is ending. We’re entering a multipolar world with regional currency blocs — and gold is the common denominator.

What’s Happening in 2025:

• BRICS Currency Basket: Discussions include gold backing for trade settlements.
• ASEAN+3 (Asia): Exploring local currency trade — with gold as collateral.
• Gulf States: Saudi Arabia and UAE linking oil sales to gold-backed dirhams.

Historical Precedent: In the 1960s, central banks sold gold to support the Bretton Woods system. Today, they’re buying to prepare for its successor.

Which Central Banks Are Buying the Most Gold in 2025?

Based on IMF and World Gold Council data, here are the top buyers:

1. China: 200+ tons/year — doesn’t report monthly, but consistent accumulation
2. Poland: 100+ tons/year — fastest-growing reserve in Europe
3. India: 150+ tons/year — cultural affinity + strategic diversification
4. Turkey: 80+ tons/year — inflation hedge + domestic sourcing
5. Singapore: 50+ tons/year — neutral hub preparing for financial reset

Surprise Buyer: Czech Republic — added 30 tons in 2024, signaling Eastern Europe’s shift.

How Central Banks Are Buying Gold — And How You Can Mirror Their Strategy

Central banks don’t buy collectibles or jewelry. They buy:

• LBMA-approved bars (400 oz, 1 Kilo, 100 oz)
• High purity (.9999 fine)
• From trusted refiners (PAMP, Valcambi, Heraeus)

How to Invest Like a Central Bank:

1. Start with Recognizable Bars: 1 oz PAMP Suisse Gold Bar — sealed, assay-backed, globally trusted
2. Scale Up to Large Bars: 1 Kilo Gold Bar — lowest premium, efficient storage
3. Keep Fractional for Emergencies: 20 x 1g Valcambi CombiBar — spendable in crises
4. Avoid Collectibles: Central banks don’t buy graded coins or themed bars — neither should you for core holdings.

What History Tells Us About Central Bank Gold Buying

This isn’t the first time central banks have gone on a gold-buying spree:

• 1960s–1971: Central banks sold gold to defend the $35/oz peg. When Nixon closed the gold window, prices soared.
• 2009–2012: Post-financial crisis, banks bought 1,500+ tons. Gold rose from $800 to $1,900.
• 2022–2025: Sanctions, inflation, de-dollarization. Gold up from $1,800 to $2,300+ — and climbing.

Pattern: When central banks start buying, gold enters a multi-year bull market. The average gain during these cycles: 150–300%.

What Experts Are Saying About Central Banks Buying Gold in 2025

• World Gold Council: “Central bank demand is structural, not cyclical. It will support prices for years.” (worldgold.org)
• Goldman Sachs: “Gold is the ‘anti-fiat’ asset. Central banks are preparing for a fragmented monetary system.”
• BlackRock: “In a world of weaponized finance, gold is the only truly neutral reserve asset.”

How Central Banks Buying Gold Affects You — 3 Key Implications

1. Higher Gold Prices: Record demand = upward price pressure. Gold could reach $3,000–$5,000/oz in this cycle.
2. Stronger Premiums: High demand may increase premiums on popular products like Gold Eagles or PAMP Bars.
3. Supply Shortages: Mints are backlogged. Buy now — don’t wait. → Should You Buy Coins or Bars?

Central Banks Buying Gold: Your 2025 Action Plan

Don’t just watch — participate. Here’s your checklist:

• ✅ Allocate 5–20% of your portfolio to physical gold
• ✅ Start with LBMA-approved bars or government coins
• ✅ Store securely — home safe or private vault
• ✅ Avoid collectibles for core holdings
• ✅ Buy regularly — dollar-cost average like central banks do

Top 3 Products to Buy If You Believe Central Banks Are Right

1. The Central Bank Starter:
   1 oz PAMP Suisse Lady Fortuna Gold Bar (In Assay)
   Why: LBMA-approved, sealed, globally recognized — exactly what central banks buy.
2. The Efficiency Play:
   1 Kilo Italpreziosi Cast Gold Bar (New)
   Why: Lowest premium per ounce. Scale like Poland or Singapore.
3. The Liquidity Hedge:
   100 x 1g Valcambi Gold CombiBar™ (In Assay)
   Why: Break off 1g pieces for barter or emergencies — fractional gold central banks can’t easily replicate.

Ready to Invest Like a Central Bank? Start Here

Don’t wait for the next headline. Position yourself now.

👉 Shop LBMA-Approved Gold Bars
→ Start with: PAMP Suisse Gold Bar

👉 Explore Large Gold Bars
→ Start with: 1 Kilo Gold Bar

👉 Browse Fractional Gold
→ Start with: Valcambi CombiBar

Have questions? Our bullion specialists are standing by at support@metalbullion.store or 1-800-GOLD-CBANK.