Gold bars (Theo Hudayanto via Dreamstime.com), Photo: Dreamstime.com
In a world where the global financial order is showing signs of transformation, one European country has decided to bet heavily on the precious metal.
Central banks continue to invest massively in gold, and once again, the numbers are surprising, writes La Razon. In the third quarter of the year, monetary authorities around the world increased their reserves by almost 220 tonnes, a 10% increase from the same period last year and 28% more than the previous quarter. In total, according to data from the World Gold Council, purchases since the beginning of the year are around 630 tonnes. Although this volume is slightly lower than in recent years, it remains significantly higher than the pre-2022 average of between 400 and 500 tonnes.
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In this context, a striking trend is emerging: the circle of countries buying reserves is expanding. After years in which emerging economies led the build-up – with Russia, China and India usually leading the way, and with frequent additions such as Turkey, Kazakhstan and Uzbekistan – several European Union member states are now increasing their reserves. The motivation remains the same: to stabilize their currencies, diversify foreign reserves and reduce dependence on the dollar, a phenomenon known as “de-dollarization”. This movement gained particular momentum after Russia's invasion of Ukraine in 2022, when Western powers froze Russia's international reserves.
The Czech Republic recently stood out, ranking among the top five buyers of gold in 2023 and 2024. This year it ranks sixth, purchasing nearly 16 tons. However, the spotlight is on Poland. The European country has bought nearly 67 tonnes so far this year, more than any other country in the world. In 2024, its purchases reached nearly 90 tons, almost double that of China, which earned it the first place globally. In 2023, it had already secured second place with 130 tons.
The pace of purchases has catapulted Polish reserves: since 2023, they have almost tripled and now stand at around 515 tonnes. This places Poland in tenth place in the world, after the Netherlands, but ahead of economies such as the UK and Spain.
Despite the strong growth, Polish authorities say there is still a long way to go. In early September, the central bank announced its long-term goal of holding around 30% of its foreign reserves in gold. Currently, the proportion is about 24%, which would require the purchase of about 150 additional tons at the current price.
“Gold is the only safe asset for state reserves,” central bank president Adam Glapiński said in an official statement, justifying the buying strategy in an unstable global scenario.
Glapiński elaborated on this strategy in a 2024 article in which he emphasized the geopolitical relevance of gold. He explained that the international situation and potential future threats to the country's economic and military security, along with Poland's own history, require preparation for any scenario.
The central banker pointed out that, unlike traditional currencies, gold is not subject to the monetary policy decisions of other central banks, nor to an unlimited expansion of its supply. In addition, he emphasized that significant gold reserves strengthen confidence in the national currency and the monetary authority.
Although Poland's central bank governor did not explicitly mention Russia or the high level of US debt, his remarks suggest a changing geopolitical context and an active search for protection against systemic risks. In a world where the global financial order is showing signs of transformation, Poland has decided to make a significant investment in the precious metal.
Article made with the support of Rador Radio Romania
