Central banks have been increasing the share of gold stored within their own borders rather than relying on traditional offshore vaulting hubs, reflecting a broader reassessment of reserve security and access resulting from heightened geopolitical tensions.
The trend is highlighted in a recent industry survey showing that monetary authorities are continuing to treat gold as a core reserve asset while adjusting where it is physically held. Data from the survey indicates central banks have been buying an average of 1,000 tonnes of gold annually over the past four years, a level significantly above the previous decade's average.
Nearly nine in 10 respondents expect global central bank gold reserves to rise over the next year, while 45% expect their own holdings to increase. Only a small fraction expect a decline.
The findings also show a growing preference for domestic storage. A portion of central banks reported increasing the share of bullion held inside their own countries over the past year, while others diversified storage across multiple international locations instead of concentrating reserves in traditional custodial centers such as London or New York vaults. The shift has been linked to concerns about asset accessibility during periods of political strain, particularly after Western sanctions led to the freezing of a large portion of Russian foreign reserves in 2022.
Analysts cited in reporting from CNBC noted that concerns over access to overseas-held reserves have influenced several monetary authorities to reassess custody arrangements, while also pointing to gold's continued role as a politically neutral reserve asset held directly on national balance sheets.
The same survey shows a rising share of respondents adjusting storage strategies rather than selling holdings. A portion of central banks increased domestic storage levels over the past year, while another group expanded the number of countries used for offshore storage, reflecting a diversification approach rather than consolidation into a single external hub.
The reassessment of gold custody practices has been linked in part to broader geopolitical instability stemming from the war in Ukraine, which has reshaped financial risk calculations for sovereign reserve managers. The freezing of Russian state assets prompted debate among central banks over the legal and operational risks of holding bullion and foreign currency reserves outside national jurisdiction.
The World Gold Council survey underpinning the findings, based on responses from dozens of central banks, also notes that gold continues to be viewed as a hedge against inflation, currency volatility, and geopolitical shocks, even as prices have fluctuated in recent years.
Some central banks have also altered the composition of overseas holdings without physically moving bullion, adjusting allocations through swaps or reclassification while maintaining existing custody arrangements abroad. Others have increased the number of storage jurisdictions used for bullion reserves in an effort to reduce reliance on a single external repository.
