Why Central Banks Bought 863 Tonnes of Gold in 2025

Central bank demand for gold cooled in 2025 but remained far above historical averages, signaling a continued strategic shift toward the precious metal among the world's monetary authorities.

Official institutions accelerated their purchases in the final quarter, adding 230 tonnes to global reserves—a 6% increase over the previous quarter. According to the World Gold Council, this pushed total net buying for the year to 863.3 tonnes.

While this figure represents a 21% decrease from the record-breaking 1,136 tonnes purchased in 2022 and marks the lowest annual total since 2021, it was still the fourth-largest expansion of central bank gold holdings on record. The buying frenzy far outpaced the 2010-2021 annual average of just 473 tonnes.

Figure 1: This chart of annual central bank net gold purchases shows that while 2025 demand moderated from the 2022-2024 peaks, it remained significantly above the 2010-2021 historical average, highlighting gold's sustained strategic appeal.

Price Sensitivity and Strategic Appeal

The surging gold price was a likely factor behind the more measured pace of accumulation. The World Gold Council noted that higher prices prompted "a more cautious approach," demonstrating that central banks are not immune to market dynamics, even as their long-term strategic interest remains firm.

Despite falling short of the 1,000-tonne mark, the council described the 2025 demand as "impressive," underscoring the metal's role as a key reserve asset. In fact, late last year, gold surpassed U.S. Treasuries to become the world's largest foreign reserve asset.

Poland Leads the Global Gold Rush

In 2025, twenty-two central banks increased their gold reserves by at least one tonne, with Poland leading the pack.

The National Bank of Poland (NBP) was the top buyer, adding 102 tonnes to its vaults. This brought the country's total holdings to 550 tonnes, which now accounts for approximately 28% of its official reserves. For context, the NBP held only 14 tonnes in 1996 and now holds more gold than the European Central Bank.

Poland's ambitions don't stop there. The NBP has announced plans to purchase up to 150 more tonnes, aiming for a total of 700 tonnes. NBP Governor Adam Glapiński stated this move would elevate Poland to an "elite" status, placing it "among the elite 10 countries with the largest gold reserves in the world."

Other Major Buyers in 2025

Several other nations made significant additions to their gold reserves:

• Kazakhstan: The National Bank of Kazakhstan was the second-largest buyer, adding 52 tonnes in its biggest annual purchase since 1993. Governor Timur Suleimenov confirmed the bank intends to remain a net buyer until global tensions ease.

• Brazil: After a pause, Brazil re-entered the market, with its central bank adding 43 tonnes between September and November, boosting its total reserves to 172 tonnes.

• Turkey: The Central Bank of Turkey continued its steady buying streak, adding 27 tonnes over the year through a series of smaller, consistent purchases.

• Czech Republic: The Czech National Bank also pursued a slow-and-steady strategy, buying gold for 34 consecutive months. It added 20 tonnes in 2025, bringing its total to 72 tonnes, with a goal of reaching 100 tonnes by 2028.

China's Official vs. Unofficial Gold Holdings

The People's Bank of China (PBoC) officially reported a more modest 27-tonne increase in its gold reserves for 2025, bringing its declared total to 2,306 tonnes. China has now reported increases for 14 straight months, adding 402 tonnes over that period.

However, many analysts believe China's official numbers tell only part of the story. Researcher Jan Nieuwenhuijs has reported that the PBoC is secretly accumulating vast amounts of gold off the books. His analysis suggests China may hold over 5,000 tonnes of monetary gold in Beijing—more than double its publicly admitted figure.

This trend of "opaque activity" was also highlighted by the World Gold Council, which found a major gap between estimated demand and officially reported data. This discrepancy, accounting for 57% of the annual total, suggests substantial unreported buying by official institutions.

Few Sellers in a Bullish Market

While buying was widespread, selling was minimal. The most notable sellers in 2025 were:

• Singapore: Decreased reserves by 14 tonnes.

• Russia: Sold 6 tonnes.

• Jordan: Reduced holdings by 1 tonne.

• Germany: A 1-tonne decrease was linked to its coin minting program.

Outlook: Central Banks Remain Bullish on Gold

Despite the slowdown from 2022's record pace, the underlying trend remains strong. The World Gold Council expects persistent economic and geopolitical uncertainty to sustain demand for gold as a core reserve asset.

A 2025 survey of central banks reinforces this view. An overwhelming 95% of respondents expect global central bank gold reserves to increase over the next 12 months. Furthermore, 43% believe their own institution's gold reserves will rise, while none anticipated a decline.