In 2022, central banks bought the most gold since 1967.

Central banks added a whopping 1,136 tons of gold worth some $70B to their stockpiles in 2022, by far the most of any year since 1967, reported the WGC. The data underlines a shift in attitude to gold since the 1990s and 2000s when central banks, particularly those in Western Europe that own a lot of bullion, sold hundreds of tons a year. However, since the financial crisis of 2008-09, EU banks have stopped selling, and a growing number of emerging economies such as Russia, Turkey, and India have been buying gold. Central banks like gold because it is expected to hold its value through turbulent times, and unlike currencies and bonds, it does not rely on any issuer or government. Gold also enables central banks to diversify away from assets like US Treasuries and the dollar.