Where Do Central Banks Buy Gold From? A Look at 2025 Trends and Global Implications

Key Highlights: Central Banks and Gold in 2025

1. Gold Near All-Time Highs:
   Gold is trading around $3,345 per ounce, just below its April 2025 peak of $3,500.

2. Massive Central Bank Buying:
   • 43% of central bankers plan to increase reserves.
   • 95% believe global central bank reserves will rise in the next year.
   • In May alone, 20 tonnes of gold were purchased

3. Top Buyers:
   China, Turkey, Poland, and Kazakhstan led the purchases in May 2025.

4. Where They Buy From (WGC 2025 Data):
   • 41% – Historical legacy assets
   • 32% – Global OTC market
   • 25% – Large-scale domestic gold production
   • 17% – Artisanal & small-scale gold mining (AGSM)

5. Shift from Dollar to Gold:
   • US Dollar Index down 9.8% in 2025
   • Concerns over US debt ($3.9 trillion increase expected)
   • Central banks hedge with gold amid growing distrust in USD.

6. Top Gold Holders (2025):
   • USA – 8,133 tonnes
   • India – 876 tonnes

Central banks have emerged as powerful players in the global gold market, fueling the ongoing rally in gold prices. As of July 16, 2025, gold prices are hovering around $3,345 per ounce, slightly below the April peak of $3,500. Despite this, central banks worldwide are continuing their strategic gold purchases.  

Who Is Buying and Why?

The World Gold Council’s Central Bank Gold Reserves Survey 2025 reveals that 43% of central bankers plan to increase their country’s gold reserves, while a massive 95% believe global central bank reserves will rise in the coming year.

Inflation, geopolitical tensions, and concerns about currency stability are driving this accumulation. Central banks view gold as a long-term safe-haven asset, particularly amid rising US debt and pressure on the US dollar.

In May 2025 alone, global central banks bought 20 tonnes of gold, with the 12-month average standing at 27 tonnes. China, Turkey, Poland, and Kazakhstan were among the top buyers last month.

In a historic run, 2024 recorded the highest-ever central bank gold purchases at 1,180 tonnes, surpassing 1,082 tonnes in 2022 and 1,037 tonnes in 2023.

Where Are Central Banks Buying Gold From?

According to the latest World Gold Council (WGC) 2025 data:

• 41% of the gold held by central banks is classified as historical legacy assets.

• 32% comes from the global Over-The-Counter (OTC) market.

• 25% originates from large-scale domestic gold production.

• 17% is sourced from artisanal and small-scale gold mining (AGSM).

Notably, 2025 marks the first year WGC included large-scale and artisanal domestic gold production data—previously grouped under a broader “domestic gold production” category in 2024.

Among surveyed banks:

• 47% sourced gold from both large-scale mining and AGSM.

• 37% purchased exclusively from large-scale mining.

• 16% relied only on AGSM sources.

This diversification of sourcing channels suggests a more decentralized gold supply strategy, reducing dependency on global OTC markets and aligning with national resource agendas.

Gold vs Dollar: A Shift in Reserve Strategy?

The shift toward gold is also linked to concerns over the US dollar’s weakening position. The US Dollar Index has dropped 9.8% year-to-date, slipping below 100—a level unseen in years.

Experts cite multiple reasons:

• Speculation around currency wars sparked by former President Trump’s tariff policies.

• Mounting pressure on the Federal Reserve’s independence.

• An expected $3.9 trillion surge in US debt under Trump’s proposed “One Big, Beautiful Bill”.

• A recent downgrade of the US credit rating by Moody’s, owing to fiscal concerns.

As a result, central banks—arguably the best-placed institutions to assess systemic financial risks—are placing their bets on gold as a buffer against volatility in global currency markets and political uncertainties.

Who Holds the Most Gold?

As of 2025:

• The United States remains the top holder with 8,133 tonnes of gold.

• India holds 876 tonnes, continuing to strengthen its position amid global uncertainties.

The gold-buying spree by central banks is more than just a reserve strategy—it is a signal. A signal of shifting priorities, changing trust in global currencies, and a return to the oldest form of financial insurance in times of instability. As the world watches the dollar wobble, central banks appear to have chosen gold as their anchor.