Central Banks Continued Stockpiling Gold in Q1

Central banks continued to stockpile gold in the first quarter.

Official net gold purchases came in at 244 tonnes, 21 percent below Q1 2024 (310 tonnes), but 25 percent above the five-year quarterly average. As the World Gold Council put it, central bank gold buying remained “comfortably within the quarterly range of the last three years.”

Official central bank gold demand topped 1,000 tonnes for the third straight year in 2024. To put that into perspective, central bank gold reserves increased by an average of just 473 tonnes annually between 2010 and 2021.

It’s important to note that these numbers represent gold purchases reported to the IMF. The World Gold Council noted, “Akin to recent quarters, reported purchases only accounted for 22 percent of central bank demand in Q1, implying widespread buying interest beyond what was captured by the IMF IFS data.  This may be explained by a number of factors, including delays to reporting and purchasing by non-central bank official institutions.”

It can also be explained by countries, including China, buying gold off the books. It is likely that some central banks hold far more gold than they report.

Who Bought Gold in Q1? 

The National Bank of Poland was the biggest central bank gold buyer in 2024 and stayed on top with continued purchases through the first three months of 2025, adding another 49 tonnes.

Last year, National Bank of Poland Governor Adam Glapiński indicated the central bank plans to increase its gold holdings to 20 percent of its reserves.

"This makes Poland a more credible country, we have a better standing in all ratings, we are a very serious partner, and we will continue to buy gold.”

Driving toward that goal, the Polish central bank expanded its gold holdings by 90 tonnes in 2024.

With the additional purchases in Q1, the National Bank of Poland has eclipsed Glapiński’s goal, now holding 497 tonnes, representing 21 percent of its reserves.

The Polish central bank began aggressively increasing its gold reserve in 2021 when Glapiński announced a plan to buy 100 tons of the yellow metal. When he announced the initial plan to expand its gold reserves, Glapiński said holding gold was a matter of financial security and stability. 

"Gold will retain its value even when someone cuts off the power to the global financial system, destroying traditional assets based on electronic accounting records. Of course, we do not assume that this will happen. But as the saying goes – forewarned is always insured.

“And the central bank is required to be prepared for even the most unfavorable circumstances. That is why we see a special place for gold in our foreign exchange management process."

Glapiński also pointed out that “Gold is free from credit risk and cannot be devalued by any country’s economic policy. Besides, it is extremely durable, virtually indestructible.” 

The People's Bank of China publicly returned to the table in November after a six-month pause in reporting gold purchases. The Chinese central bank was the second-biggest buyer in Q1, adding another 13 tonnes of gold to its official reserves. That pushed its official gold holdings to 2,292 tonnes, about 6.5 percent of its total reserves. 

Notice the emphasis on "official."

China is one of the central banks that likely holds significantly more gold than it publicly discloses. As Jan Nieuwenhuijs has reported, the People's Bank of China is secretly buying large amounts of gold off the books. According to data parsed by the renowned Money Metals researcher, the Chinese central bank is currently sitting on more than 5,000 tonnes of monetary gold located in Beijing – more than TWICE what has been publicly admitted.

The National Bank of Kazakhstan added a net 6 tonnes of gold in Q1, despite selling 8 tonnes in February. The Kazakh central bank pivoted back to buying in March, adding 11 tonnes to its holdings. That pushed its official gold reserves to 291 tonnes.

In early April, National Bank of Kazakhstan Deputy Governor Aliya Moldabekova told Bloomberg that the central bank would hold off on gold sales until uncertainty declines and prices stabilize.

It is not uncommon for banks that buy from domestic production – such as Uzbekistan and Kazakhstan – to switch between buying and selling. 

As for Uzbekistan, it was the biggest seller in Q1, shrinking its gold holdings by a net 11 tonnes despite being the biggest buyer in January.

The Czech National Bank has been slowly by steadily building its gold reserves for the last several years. The Czechs added another 5 tonnes of gold to their holdings in the first quarter. That pushed its total gold reserves to 56 tonnes, four times higher than at the end of 2021.

 After ranking as the third biggest buyer in 2024, the Reserve Bank of India continued adding to its gold reserves in Q1, but at a much slower pace. The RSB added 3 tonnes of gold in Q1. At the end of March, the Indian central bank held 880 tonnes of gold, making up about 12 percent of its reserves.

Other notable buyers in the first quarter included:

• Turkey – 4 tonnes
• Qatar – 3 tonnes
• Egypt – 1 tonne
• State Oil Fund of Azerbaijan (SOFAZ) – 19 tonnes

Other notable sellers included:

• Russia – 3 tonnes
• Kyrgyz Republic – 2 tonnes

The Big Picture

Strong central bank gold buying continued a trend we’ve seen over the last three years.

On net, central banks officially increased their gold holdings by 1,044.6 tonnes in 2024. It was the 15th consecutive year of expanding gold reserves.

Last year was the third-largest expansion of central bank gold reserves on record, coming in just 6.2 tonnes lower than in 2023 and 91 tonnes lower than the all-time high set in 2022. (1,136 tonnes). 2022 was the highest level of net purchases on record, dating back to 1950, including since the suspension of dollar convertibility into gold in 1971.

Looking at the broader perspective, the central bank gold buying trend is now entering its 16^th year.

World Gold Council analysts expect the trend to continue, with buying “close to the range seen over the past three years on continued elevated trade-related risks and uncertainty premia in U.S. assets.” 

The WGC also noted that “diversification” with “a reduction of U.S. assets” is one of the factors driving central bank gold buying. In other words, de-dollarization.

“We don’t see an end to this narrative unless there is a material shift in geopolitical tensions. The IMF has downgraded growth prospects in the US more than in other major economies, citing policy uncertainty. This suggests that other countries may have leverage in negotiations, although these typically last months and years, not weeks. Hence, we don’t expect any near-term resolutions.”

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