LATEST SURVEY: Record Growth in Gold Reserves

Central banks around the world are signaling a strong shift in their approach to gold reserves. According to the latest Physical Gold & Silver Report survey by The World Gold Council, formed in 1987 by some of the world’s most forward-thinking mining companies. 

An overwhelming 89% of respondents expect global central bank gold reserves to increase over the next year. This trend marks a significant moment for investors and collectors interested in precious metals, especially those new to gold, silver, and Pre-1933 U.S. coins. Understanding these developments can help you make informed decisions about your own investments and collections.

Survey Highlights on Central Bank Gold Reserve Expectations

The recent survey reveals a clear consensus among central banks: gold remains a critical asset.

Nearly nine out of ten respondents anticipate an increase in their countries' gold reserves within the next year. This expectation reflects ongoing concerns about economic uncertainty, inflation, and currency fluctuations. Interestingly, 45% of central banks expect their own gold holdings to rise, a record high compared to previous years. While this is a substantial portion, most respondents still foresee no change in their reserves. This cautious optimism suggests that while many banks are preparing to expand their gold assets, others are maintaining a steady approach.

Why Central Banks Hold Gold

The reasons central banks hold gold are consistent but have gained renewed emphasis recently. The survey highlights three main motivations:

• Crisis Performance

Gold has historically performed well during financial crises, offering a safe haven when other assets falter. Central banks value gold for its stability in turbulent times.

• Portfolio Diversification

Diversifying reserves reduces risk. Gold provides a non-correlated asset that balances portfolios heavily weighted in currencies or (U.S.) government bonds.

• Inflation Hedging

With inflation concerns rising globally, gold serves as a hedge against the declining purchasing power of fiat currencies.

These reasons explain why central banks continue to view gold as a strategic asset, especially amid geopolitical tensions and economic uncertainty.

Shifts in Currency Holdings

The survey also sheds light on changes in currency reserves.

There is a noticeable shift away from the US dollar, reflecting a desire among central banks to diversify their foreign currency holdings. Despite this, the outlook for other major currencies remains stable, with no significant increases or decreases expected.

This trend suggests central banks are cautious about over-reliance on any single currency, including the US dollar, while still maintaining balanced exposure to traditional reserve currencies.

Funding New Gold Purchases

Central banks plan to fund their new gold acquisitions through various methods. The survey identifies two primary sources:

• Domestic Programs

Many central banks will use internal funding mechanisms, including budget allocations and domestic financial programs, to finance gold purchases.

• Asset Sales

Some banks intend to sell other assets, such as foreign currency reserves or securities, to raise funds for buying gold.

This approach allows central banks to increase gold reserves without significantly disrupting their overall financial positions.

Vaulting Preferences and Storage Locations

Storage and security remain top priorities for central banks. The survey reveals a strong preference for established vaulting facilities, with the Bank of England continuing to be a popular choice for gold storage. Its reputation for security and accessibility makes it a favored location.

However, some central banks are adjusting their storage strategies, moving gold reserves closer to home or diversifying storage locations to reduce geopolitical risks. These changes reflect a broader trend toward enhancing control and security over physical gold holdings.

What This Means for Gold and Silver Investors and Collectors

For novice investors and collectors of gold, silver, and Pre-1933 U.S. coins, these findings offer valuable insights:

• Growing Demand

Central banks increasing their gold reserves signals strong institutional demand, which can support gold prices over time.

• Stability and Safety

Gold’s role as a crisis hedge and inflation protection remains relevant, reinforcing its value in personal portfolios.

• Diversification Importance

Just as central banks diversify their holdings, individual investors should consider balancing precious metals with other assets.

• Storage Considerations

The emphasis on secure vaulting highlights the importance of safe storage for physical metals, whether at home or through trusted custodians.

The latest survey on central bank gold reserves paints a clear picture: gold remains a cornerstone of global financial stability. With most central banks expecting to increase their holdings, the precious metals market is poised for continued interest and potential growth. For those new to investing or collecting, understanding these trends can help you build a resilient and informed approach to the physical gold, silver and Pre-1933 U.S. coins forefront.

The Checklist Before You Buy a Gold/Silver IRA or Pre-1933 U.S. Coins

1) What exactly am I buying—and what problem is it supposed to solve?

• Is this IRA-eligible bullion (specific bars/coins), or a collectible/numismatic coin being marketed for rarity?

• Are we buying this for diversification, an inflation hedge, a crisis hedge, or speculation?

• What would make this a “good decision” one year from now—what are we measuring?

2) What are the total costs—today and every year after?

Ask for a written, itemized breakdown of:

• Dealer markup / spread (what you pay vs. what you could sell for immediately)

• Shipping/handling (if applicable)

• IRA setup fees

• Annual custodian/admin fees

• Storage fees (annual)

• Selling/liquidation fees (and any wire/processing fees)

If someone says “no fees,” make sure that doesn’t simply mean higher markups.

3) Where will the metals be stored—and who controls them?

• For an IRA, confirm the metals are held with an approved custodian/depository (not at home).

• Which depository is used, and what insurance coverage applies?

• Is storage segregated (your specific items) or commingled (pooled with others)?

• How do you verify holdings (statements, audits, serial numbers for bars, etc.)?

4) How do I sell—and what price should I realistically expect?

• Is there a buyback policy?

• How is the buyback price determined (e.g., spot minus a spread)?

• How quickly can you liquidate if you need cash?

• Any minimums, delays, or “market disruption” language that could slow a sale?

5) Any compliance, tax, or “too good to be true” red flags?

• For IRAs: confirm the metals are IRA-eligible and not treated as collectibles.

• For pre-1933 coins: are you paying mostly for metal value or a numismatic premium?

• Who handles authentication/grading, and what happens if a coin is later disputed?

• Be cautious with claims like “can’t lose,” “government-proof,” “guaranteed,” or pressure to “act today.”

6) Can I diversify using an in-service withdrawal (while still working)?

• If you’re actively participating in a 401(k) or 403(b), ask your plan administrator whether in-service withdrawals/rollovers are allowed, at what age, and for what sources (employee deferrals, employer match, profit sharing).

• Confirm whether the transfer can be done as a direct rollover to a self-directed IRA (so it stays tax-deferred) and what paperwork/timing the plan requires.

• Decide what portion (not “all or nothing”) fits your diversification goal while keeping enough liquidity and flexibility inside the plan.

Important note: This checklist is for education and better decision-making. Any purchase should fit the client’s broader plan, liquidity needs, and risk tolerance—not headlines.

Contact: js@joesimon.solutions