Central Banks Want to Keep Increasing Gold Reserves

According to a survey of reserve managers, 89% of central banks expect global gold reserves to increase further over the next 12 months. This is a very strong signal, as it shows that interest in gold is not simply a short-term reaction to geopolitical tensions or high inflation.

Central banks are increasingly looking to diversify their reserves, reduce dependence on individual currencies, and increase their exposure to assets that carry no direct credit risk. Gold remains one of the most important reserve assets in this respect.

What I find most interesting is that these purchases are continuing even at very high gold prices. This suggests that central banks are focusing much more on the long-term stability and security of their reserves than on the short-term price of gold.