25.02.2025 15:42
Due to global economic uncertainties and increasing geopolitical tensions, the world's leading central banks are increasing their gold reserves. In 2024, gold demand reached unprecedented levels due to the interest of central banks and private investors. Turkey ranks among the top 10 countries in the world for gold reserves. By the end of 2024, Turkey has 615 tons of gold reserves.
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The world's leading central banks are increasing their gold reserves due to uncertainties in the global economy and rising geopolitical tensions, while the share of gold in total reserves continues to rise.
According to information compiled by AA correspondent from the World Gold Council (WGC) "2024 Gold Demand Trends" report, the demand for gold from central banks continues to increase in the medium and long term. Gold demand reached unprecedented levels in 2024, influenced by ongoing geopolitical and economic uncertainties such as inflation fears or the collapse of global trade, along with the interest of central banks and private investors. Central banks continued their aggressive buying strategies in 2024, purchasing more than 1,000 tons of gold for the third consecutive time. Central banks that acquired a total of 1,051 tons of gold in 2023 added 1,045 tons of gold to their reserves last year.
CENTRAL BANKS' GOLD PURCHASES TRIGGER RECORDS
The gold purchases of central banks have been one of the main reasons for the record-breaking prices of gold per ounce. It is stated that the tendency of central banks to purchase gold and hold high reserves stems from the economic risks that may arise in reserve currency economies and increasing geopolitical tensions. Gold reserves are defined as the portion of a country's monetary reserves held in the form of gold bars by central banks. These reserves serve as a protection against economic uncertainty and can be used as a means of payment during times of crisis.
While the World Bank recommends that central banks hold up to 22% of their reserves in gold, it is noteworthy that some central banks have gold reserves that far exceed this figure. According to the Council's survey, this trend among central banks will continue this year. 69% of the central banks participating in the survey stated that they want to increase the proportion of gold in their portfolios due to inflation and geopolitical risks within the next five years.
POLAND IS THE COUNTRY WITH THE HIGHEST GOLD PURCHASES WORLDWIDE
Poland, which made the highest annual gold purchases in its history with 90 tons last year, became the country with the highest gold purchases worldwide. The Polish Central Bank increased the share of the precious metal in its portfolio to nearly 17%. Turkey followed this country with 75 tons. As economic and geopolitical risks increase globally, both investors and central banks are turning to gold as a "safe haven," while Turkey ranks in the top 10 countries for gold reserves worldwide. As of the end of 2024, Turkey has 615 tons of gold reserves, which constitutes 36% of the country's foreign reserves. Additionally, during the week of February 14 this year, the central bank's gold reserves increased by $1 billion 912 million, rising from $70 billion 563 million to $72 billion 475 million.
THE US HAS THE MOST GOLD RESERVES
As of December 2024, central banks worldwide hold a total of 37,775 tons of gold reserves. According to WGC, a total of 216,265 tons of gold was mined by the end of last year. Of this gold, 97,149 tons were used for gold jewelry. The United States, which has the largest gold reserves, holds approximately 8,133.5 tons of gold. The gold reserves of the US constitute 75% of its total foreign reserves. The gold reserves of the US are valued at $42.22 per ounce. Germany ranks second with approximately 3,351.5 tons of gold reserves, constituting 74% of its foreign reserves. The third place is held by the IMF with 2,814 tons of gold reserves, followed by Italy with 2,451.8 tons and France with 2,437 tons.
RUSSIA IS USING GOLD RESERVES TO WITHSTAND SANCTIONS
Russia, which is at war with Ukraine, has 2,335.9 tons of gold. Russia's gold reserves constitute 32% of its total foreign reserves. One reason for the country's resilience against Western sanctions is said to be its high gold reserves. China, the world's largest gold producer, ranks seventh with approximately 2,279.6 tons of gold, which corresponds to nearly 6% of its portfolio. Due to increasing trade tensions with the US and Taiwan, it is stated that the Chinese central bank will continue its gold purchases. The Chinese Central Bank, which purchased 44 tons of gold last year, notably added approximately 5 tons to its portfolio in January.
Switzerland ranks eighth with 1,039.9 tons of gold, which constitutes about 10% of its central bank's portfolio, and India ranks ninth with 876.2 tons, while Japan is in tenth place with 846 tons. Turkey ranks 11th in this list with 615 tons (excluding the IMF, it is in the top 10).
GOLD OUNCE PRICE HAS BROKEN RECORDS 10 TIMES THIS YEAR
Starting the year at $2,623, the price of gold per ounce has gained more than $330 since the beginning of the year, breaking records 10 times during this period. Analysts stated that concerns about the consequences of US President Donald Trump's aggressive tariff policy have affected the markets. Analysts reported that the uncertainty since Trump took office on January 20 has continuously increased the demand for gold as a safe haven, while also noting that the demand from central banks, especially the Chinese Central Bank, has raised the price of gold per ounce.
DETERIORATING GEOPOLITICAL ENVIRONMENT INCREASES DEMAND FOR GOLD
President Trump's rise to power is expected to further deteriorate relations between the US and China, and the demand for the precious metal is expected to increase due to geopolitical risks. Increasing geopolitical tensions and the war in Ukraine, the tendency to avoid sanctions, the urge to avoid other external influences, and the diminishing role of the dollar as an international reserve currency are all contributing to the increased demand for the precious metal. Meanwhile, due to the growing applications of artificial intelligence and electronics in the technology sector, gold demand increased by 7% last year, rising to 326 tons, which had an upward effect on prices.
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