- Quantitative easing and rising interest rates have encouraged central banks to reconsider their gold reserves
- And so have economic sanctions…
After the gold standard was dismantled, gold lost its place at the heart of the monetary system. Since the 1970s, currencies have not been linked to gold, nor have economies settled their deficits in bullion. But 50 years later, central banks seem to be getting back into the metal.
This isn’t an entirely new trend: data shows that central banks have been net buyers of gold since 2009. Yet momentum has accelerated over the past couple of years: according to the World Gold Council, central banks bought 1,037 tonnes of gold in 2023 – just shy of the record amount.