Central Banks Purchased More Gold to End 2021

According to the World Gold Council's most recent figures, central banks added a total of 14.2 tons of gold to the reserves in December. Central banks' purchases of gold increased by 82% year on year.

In December, Turkey was the biggest importer, adding 10.1 tons of gold to its stockpiles, increasing its total gold reserves to 10.1 tons. Turkey was a significant seller in the third quarter of last year, but it looks to be rebuilding its stockpiles.

In 2021, central banks contributed 463 tons of gold to world reserves. That was 82% more than in 2020, the 12th year in a row of net acquisitions. During that time, central banks purchased a net total of 5,692 tons.

Following record years in 2018 and 2019, central bank gold purchases dropped in 2020, with net purchases totalling about 273 tons. Given the strength of central bank purchases in 2018 and 2019, a reduced pace of acquisitions in 2020 was projected. The market has been influenced by the economic upheaval created by the coronavirus outbreak.

In 2019, central bank demand totalled 650.3 tons. That was the second-highest level of yearly purchases in 50 years, after only the net assets of 656.2 tons in 2018, the second-highest annual total on record.

"We are convinced that the general trend of net buying will continue beyond 2022," stated the World Gold Council.