Gold purchases by central banks in 2023: records and current trends

Shopping gold by central banks totaled 387 tonnes in the first half of the year, according to data compiled by the World Gold Council. This was the highest result since the organization started compiling quarterly data in 2000.

Central bank purchases fell in Q132 after setting a record in Q102,9 due to sales of XNUMX tonnes between April and June. Central banks added a total of XNUMX tonnes of gold to their reserves in the second quarter of this year.

Türkiye dominated the first quarter

Turkey was the biggest buyer of gold in the first quarter, but started selling the bullion in March. Türkiye has reduced its gold reserves by 160 tons in three months. According to the World Gold Council, this was a response to local market dynamics and likely did not reflect a change in the Turkish Central Bank's long-term gold strategy.

The gold was sold to the Turkish domestic market to meet the very strong demand for bars, coins and jewelry after the temporary partial ban on the import of gold bars. It is also worth remembering that the Turks could also protect themselves against the rapidly weakening lira in this way. Türkiye resumed buying gold in June, adding 11,4 tonnes to its reserves.

There were also other sellers in the second quarter. Kazakhstan reduced its gold holdings by 38 tons and Uzbekistan sold 19 tons of gold. These two central banks were the biggest sellers of gold in the first quarter of this year. It is not uncommon for banks buying from domestic production - such as Uzbekistan and Kazakhstan - to switch between buying and selling.

Russia, Cambodia and Germany reported slight declines in their reserves in QXNUMX, possibly due to the minting of new coins.

Nine central banks were net gold buyers in the first half of 2023.

The People's Bank of China was the largest buyer of gold in H1, adding 103 tons of gold to its official holdings. His purchases in the second quarter extended his buying streak to eight consecutive months.

Since purchasing reporting resumed in November 2022, the People's Bank of China has increased its official gold holdings to 2 tonnes. Gold accounts for 113% of China's total reserves.

The Chinese central bank accumulated 1 tons of gold between 448 and 2002, then suddenly fell silent until it resumed reporting in November 2019. Many speculate that the Chinese continued to add gold to their holdings off the books during these years.

Singapore in second place

Monetary Authority of Singapore was the second largest buyer in H1, adding 73 tons of gold to its treasury.

Poland also added a significant amount of gold to its reserves after resuming purchases in April. Polish gold resources increased by 48 tons in the first half of 23.

In the fall of 2021, the president NBP Adam Glapiński said the central bank plans to add 100 tonnes of gold to its reserves in 2022. It is not clear why the bank did not implement this plan. Recent purchases may signal the start of another round of purchases to meet the 100-ton target.

According to the 2023 Central Bank Gold Reserve Survey recently released by the World Gold Council, 24% of central banks plan to add more gold to their reserves over the next 12 months. 71% percent of central banks surveyed believe that the overall level of global reserves will increase over the next 12 months. This was an increase of 10 percentage points compared to the previous year.