“Regardless of document demand from the official sector within the final two years, coupled with climbing gold costs, many reserve managers nonetheless keep their enthusiasm for gold,” Shaokai Fan, WGC head of central banks sector, mentioned in an announcement.
The survey, which was carried out in February-April and included a complete of 69 responses, confirmed that 29% of central banks anticipated their very own gold reserves to extend within the subsequent 12 months.
That is the very best stage for the reason that WGC, an business physique whose members are international gold miners, started the survey in 2018 and compares with 24% in 2023.
The WGC mentioned 81% of respondents anticipated international central financial institution gold reserves to extend over the following 12 months in contrast with 71% a yr in the past.
Whereas in prior years, gold’s “historic place” was the highest purpose for central banks to carry gold, this issue dropped to fifth amongst WGC survey responses this yr.
The highest causes given for the will increase now are “long-term retailer of worth or inflation hedge,” “efficiency throughout instances of disaster” and “efficient portfolio diversifier.”
Some 41% of 58 respondents listed home storage because the vaults the place their gold reserves are stored, in contrast with 35% in 2023. Nevertheless, the Financial institution of England stays the preferred location listed in 55% of the responses.
Amongst 57 respondents, 15% mentioned they deliberate to vary custody preparations for his or her gold indirectly within the subsequent yr in contrast with 6% in 2023. This contains diversifying the abroad storage in addition to a rise or lower of the home storage.
(By Polina Devitt; Enhancing by Invoice Berkrot)