Central Banks Increasing Gold Reserves in 2024

Central banks worldwide have been boosting their gold reserves to record levels in 2024 as a shift towards store of value assets. According to a report by the Kobeissi Letter on Sept. 2, global net gold purchases by central banks hit 483 tonnes in the first half of 2024, a new high. This marks a 5% increase from the previous record of 460 tonnes in the first half of 2023. Major buyers during this period included the National Bank of Poland, the Reserve Bank of India, and the Central Bank of Turkey. The trend of increasing gold reserves is driven by a lack of trust in Western reserve assets, with gold being seen as a neutral and stable option. Despite gold's strong performance, Bitcoin has also shown significant growth in 2024. While gold prices hit a record high, Bitcoin has outperformed gold this year, despite some fluctuations.