World central banks are aggressively buying gold.

Central banks worldwide added another 31 tons of gold to their reserves in January, increasing their purchases by 16% compared to December 2022. According to the World Gold Council, Turkey bought 23 tons of gold in January, making it the biggest precious metal buyer among central banks during that period. As a result, the country’s gold reserves reached 565 tons, the highest level in their entire history of observations. The People’s Bank of China and the National Bank of Kazakhstan were the second and third buyers in the first month of 2023, adding 15 tons and four tons, respectively, to their reserves. Since 2022, the demand for gold has risen by 28%, primarily driven by a flight towards safer assets amid soaring inflation. Central banks’ plans to invest in gold are chiefly motivated by increasing concern about a possible global financial crisis.