Central Banks Put Diversification First as Poland Targets 700 Tons of Gold
65 percent of central banks stated that diversification is the primary reason for holding gold, at a time when Poland is targeting 700 tons and Italy holds around 2,450 tons.
Speakers in a session at the London Bullion Market Association conference stated that diversification and managing geopolitical risks top the reasons for central banks to increase their gold reserves, as 65 percent of participants in a UBS Asset Management survey cited diversification as their primary reason, followed by geopolitical risk management.
Poland aims to raise its gold reserves to 700 tons, while Italy, represented by its central bank, holds about 2,450 tons, bringing gold back to around 30 percent of its total assets, which is one of the highest ratios among major central banks.
Ghana's domestic gold purchase program recorded about 110 tons in 2025, a model adopted by other producing countries seeking to leverage their natural reserves instead of exporting raw gold and repurchasing it later at higher prices.
A survey among attendees showed that about 90 percent expect central bank purchases to accelerate or remain near current levels over the next five years, reinforcing the view that official demand will continue to support prices and serve as a key pillar in the gold market.
What do these terms mean?
Gold Reserve: The metal held by a central bank among its assets, used as a safe haven and to support the value of the national currency.
Geopolitical Risks: Risks arising from political tensions, wars, and sanctions, prompting countries to protect their reserves with assets that are not subject to freezing by another party.
Diversification: Distributing reserves across more than one asset to reduce risk instead of relying on a single currency.
Weekly Newsletter
Read between the lines before everyone else. Decode the most important economic, tech, and decision-maker movements in the region.. in 5 minutes every Saturday.
