Central Banks Cite Crisis Performance as Key Gold Holding Reason
A record 90% of central banks cited gold's performance during crises as a key factor in their decision to hold gold, according to a World Gold Council survey. Emerging market banks particularly value gold as a geopolitical hedge.
A survey of 69 central banks by the World Gold Council reveals that a record 90% of respondents cited gold's performance during times of crisis as the primary reason for holding it. The trend is especially pronounced among emerging market and developing economy central banks, where 92% listed crisis performance as the main driver, compared to 81% in advanced economies.
Gold's role as a long-term store of value and inflation hedge was highlighted by 84% of respondents, while 83% pointed to its effectiveness as a portfolio diversifier. Notably, 85% of emerging market central banks view gold as a geopolitical hedge, versus only 56% in advanced economies.
Central banks continue to view gold as a core component of their financial reserves, with the survey underscoring its enduring appeal as a safe-haven asset.
Source: The Kobeissi Letter