Why central banks are planning to add more gold

Gold has been one of the strongest-performing assets of recent years, reaching successive record highs and attracting renewed investor interest worldwide.

Yet among central banks, the discussion around gold is more about purpose.

The World Gold Council's 2026 Central Bank Gold Reserves Survey, conducted among reserve managers across advanced and emerging economies, suggests central banks increasingly view gold less as a historical inheritance, and more as an active strategic allocation within modern reserve portfolios.

Central banks have accumulated an average of 1,000t of gold (per annum) over the past four years, up significantly from the 500t average over the preceding decade. Against that backdrop, some observers have questioned whether official sector demand may be nearing its limits.

Our latest survey suggests otherwise.

A record 45% of reserve managers expect their own institution's gold holdings to increase over the next 12 months, while 89% expect total global central bank gold holdings to continue rising. At the same time, 83% believe gold's share of global reserves will be higher five years from now.

Gold's role is evolving

Perhaps the most striking finding from this year's survey is how reserve managers describe gold's purpose.

Historically, gold's presence on central bank balance sheets was often explained by legacy. Many institutions inherited large gold positions accumulated under previous monetary systems and simply maintained them over time. That explanation is becoming less relevant.

This year, only 46% of respondents cited historical legacy as a reason for holding gold, down significantly from previous years. Instead, reserve managers are increasingly focused on gold's practical portfolio characteristics.

A record 90% identified gold's performance during times of crisis as a key reason for holding it. Long-term store of value and portfolio diversification ranked closely behind.

These responses suggest central banks increasingly view gold through the same lens that many institutional investors do: as a strategic asset capable of improving resilience during periods of market stress.

In an environment characterised by geopolitical tensions, elevated fiscal deficits, shifting alliances and uncertainty around future economic growth, reserve managers appear to be placing greater emphasis on resilience than on tradition.

Diversification is becoming a bigger priority

Another important theme emerging from the survey, and consistent with our broader investor research, is diversification.

For decades, the US dollar has sat at the centre of the global reserve system. While that remains the case today, reserve managers increasingly expect a more diversified reserve landscape over time.

Nearly three-quarters of respondents (74%) expect the US dollar's share of global reserves to be moderately or significantly lower five years from now. At the same time, 83% believe gold's share of global reserves will be higher over that period.

While this does not necessarily imply a wholesale shift away from the dollar, it reflects a broader effort by central banks to reduce concentration risk and build more balanced reserve portfolios.

Gold appears to be one of the primary beneficiaries of that trend.

• Unlike sovereign bonds, gold carries no issuer risk.

• Unlike currencies, it is not tied to the economic or fiscal outlook of a single country.

• Unlike many reserve assets, its role tends to strengthen precisely when uncertainty increases.

That combination of characteristics is proving increasingly valuable in a world where geopolitical and macroeconomic risks are becoming more interconnected.

Gold ownership is only part of the story

One of the newer developments highlighted by this year's survey is where central banks choose to store their gold.

While the Bank of England remains the world's most widely used vaulting location, an increasing number of reserve managers are reassessing storage arrangements.

The proportion of respondents reporting increased domestic storage rose from 5% last year to 9% this year. Meanwhile, 10% reported diversifying overseas storage locations, up from just 2% previously.

These numbers remain relatively small, but they are directionally significant.

The trend reflects a broader focus on risk management, operational resilience and maintaining access to reserve assets under a wider range of scenarios. Just as central banks are diversifying reserve assets themselves, some are also diversifying how and where those assets are stored.

Looking ahead

The findings from this year's survey point to a central banking community that remains highly confident in gold's role within reserve portfolios.

More importantly, they suggest that confidence is being driven by contemporary considerations rather than historical precedent.

Reserve managers continue to value gold's liquidity, safety and long-term performance characteristics. But they are also increasingly focused on its ability to diversify portfolios, mitigate geopolitical risks and provide resilience in a more fragmented world.

They are among the longest-term investors in global markets. Their decisions are rarely driven by short-term price movements. Instead, they reflect assessments of structural risks and opportunities that can shape reserve management for decades.

The 2026 survey suggests those institutions see gold playing an even larger role in the years ahead.