A new survey from the World Gold Council indicates that the vast majority of global reserve managers anticipate central banks worldwide will continue expanding their gold reserves over the next 12 months. Gold has recently surpassed U.S. Treasury securities to become the largest official reserve asset globally, and the survey results confirm that central bank demand for the precious metal remains robust.
Key Findings on Reserve Plans
This confidence is mirrored in the institutions' own plans. A record-breaking 45% of the surveyed reserve managers stated they expect their own institutions to increase gold holdings within the next year. Furthermore, 84% of the central banks polled believe gold's share of global reserves will rise over the next five years, up from 76% last year.
Gold's Strategic Role and Views on the Dollar
Overall, the findings point to gold's increasingly strategic role in central bank reserve portfolios. Currently, 93% of responding central banks report holding gold, a significant increase from 81% last year. In contrast, views on the future role of the U.S. dollar are less optimistic, with 74% of central banks expecting its share of global reserves to decline over the next five years.
Shifting Motivations for Holding Gold
Central banks' understanding of gold's role is also evolving. When asked about the primary reasons for holding gold, 90% cited its performance during crises—the highest proportion ever recorded for this factor. This was followed by its role as a long-term store of value (84%) and an effective portfolio diversifier (83%). Notably, gold's function as a hedge against geopolitical risk is gaining significant attention, especially among central banks in emerging market and developing economies (85%). Meanwhile, the proportion of central banks holding gold simply because it is a legacy asset continues to fall, dropping from 62% in 2025 to 46%.
New Trend: Diversifying Storage Locations
This year's survey uncovered a new trend: a growing inclination among central banks to diversify where they store their gold. Nine percent of respondents reported increasing domestic storage of gold over the past 12 months, up from 5% last year. Another 10% said they had further diversified their overseas storage locations, a sharp rise from 2% last year. These trends are expected to continue, with 7% planning to increase domestic storage and 9% planning to further diversify overseas storage in the coming year. The Bank of England remains the most popular gold storage location among respondents (57%), with domestic storage ranking second at 49%.
Expert Commentary on the Shift in Perception
Shaokai Fan, Global Head of Central Banks and Asia Pacific (ex-China) at the World Gold Council, commented on the findings. He stated that this year's survey sends a clear message that central bank demand for gold is still on an upward trajectory. The record number of central banks planning to add to their reserves, combined with the overwhelming expectation for global official holdings to rise, underscores this trend. He highlighted a particularly notable shift in perception: fewer central banks view gold as a legacy asset, while more are recognizing it as a strategic asset for active allocation, especially in the current environment of heightened geopolitical uncertainty and a global trend towards reserve diversification.
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