Central bank gold purchases are highest on record in 2022
- Category: Precious Metals
- Date 21-04-2023
Central banks have been major players in the gold market for the past 30 years, with almost one-fifth of all gold ever mined being held by them.
In 2022, central banks purchased gold at the fastest rate since 1967, in contrast to the 1990s and early 2000s when they were net sellers of gold. The World Gold Council data shown in the infographic highlights how official attitudes towards gold have changed over time.
Central banks hold gold for several reasons: to balance foreign exchange reserves, hedge against fiat currencies and diversify portfolios.
In the 1990s and early 2000s, good macroeconomic conditions and low returns made gold an unattractive investment, resulting in central banks being net sellers of gold. However, following the 1997 Asian financial crisis and the 2007-08 financial crisis, central banks' attitudes towards gold began to change, and since 2010, they have been net buyers of gold annually.
