WGC Expects Continued Surge in Central Bank Gold Holdings

SEATTLE (Scrap Monster): According to the latest survey carried out by the World Gold Council (WGC), the gold holdings with world’s central banks are poised to witness surge over the next one year period. Around 30% of the central banks surveyed said that they plan to add to their gold reserves within the next year.

The reserve managers at central banks stated that gold is being looked forward to as a tool to mitigate risks and to get themselves prepared for further political and economic uncertainties across the globe. The optimistic outlook comes even after two successive years of record central bank purchases and sky-high gold prices.

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According to the survey, nearly 71% still view gold’s legacy as a reason to hold it. While 88% considers gold’s long-term value as the main attraction, its performance during crisis was highlighted by 82%. Also, 76% consider gold’s role as an effective portfolio diversifier as the reason to add the yellow metal to their asset portfolio.

Over 57% were of the view that gold would account for a higher proportion of reserves five years from now. Only 38% had supported the view in 2023.

The 2024 Central Banks Gold Reserves (CBGR) survey compiled data from a record 70 of the world’s central banks. It was carried out in partnership with YouGov during the period from February 19 to April 30, 2024.