Daijiworld Media Network - New Delhi
New Delhi, May 10: Central banks across the globe, including the Reserve Bank of India (RBI), are significantly increasing their gold reserves as part of a broader strategy to hedge against economic instability and geopolitical risk. From 2009 to 2024, global central banks’ collective gold holdings rose from 26,000 tonnes to 32,000 tonnes, reflecting a compounded annual growth rate of 4.1%.
India has notably raised its gold holdings, with gold now comprising 11.4% of its foreign exchange reserves — up from 6.9% in 2009, according to World Gold Council data. While such increases can sometimes reflect a drop in forex reserves rather than a rise in actual gold holdings, India has shown a clear and consistent upward trajectory in gold acquisition, especially since 2017.
Countries such as Russia, Egypt, Argentina, Poland, and Libya have seen the steepest increases in gold’s share of total reserves, with some witnessing expansions between 800 and 2,700 basis points. This surge reflects a growing global consensus that gold serves as a reliable asset amid inflation, currency fluctuations, and rising political tensions.
Despite this global shift, some of the world’s traditional economic powers — including the United States, Germany, France, and Switzerland — have kept their gold holdings relatively stable over the past 15 years. The U.S. still holds the largest gold reserve at 8,133 tonnes. However, the collective share of gold held by the top 10 central banks has dropped from 81% in 2009 to 76% in 2024, indicating increasing participation by a wider range of nations in gold accumulation.
China, like India, has been steadily building its reserves, having started its latest accumulation phase in 2014. Analysts view this movement not just as economic caution but as a broader assertion of financial sovereignty, especially for countries seeking insulation from Western-dominated monetary systems.
As global tensions persist and traditional financial systems face greater strain, central banks are reaffirming their trust in gold — not just as a commodity, but as a cornerstone of long-term monetary stability.