Why central banks are buying gold again – and what you can learn from it

Gold is often reduced to one question: is the price going up or down?

But that view is far too narrow. While many people focus on short-term price movements, states are already acting on a very different level. They are buying gold. They are building reserves. And some countries are even bringing their gold back home.

This has little to do with speculation. It is about monetary policy, state interests, trust and independence. For central banks, gold is not a passing trend. It is an asset that has a very particular role in uncertain times.

Because gold is not a claim against a debtor. It is not a liability of a bank. And it is not a payment promise from a country. Gold is a real asset that is recognised worldwide.

The key point behind it all:

• For central banks, gold is not a short-term price topic, but a strategic reserve asset.

  
  

• Since 2022, the role of gold in monetary policy has become stronger again.

  
  

• Physical gold is fundamentally different from paper assets, claims and currency reserves.

  
  

• States can influence the gold market indirectly through sanctions, interest rates, currencies, inflation and regulation.

  
  

• For private investors, the real question is not just the daily price, but ownership, structure and independence.

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Gold is more than a price

When people talk about gold, the conversation often moves straight to the price. Is gold expensive right now? Will there be a correction? Is it still worth entering the market?

These questions are understandable. But they only look at gold from a very narrow angle.

For states and central banks, gold is about something else. It is about reserves. Trust. Dependencies. And the question: which value remains when political tensions increase?

This is exactly where gold has a special position.

Gold is not a claim against a debtor. It is not a bank liability. And it is not a payment promise from a country. Gold is a real asset. It is physically present. It is scarce. And it is recognised worldwide.

That is why gold has become more important again in monetary policy. Not because it shines. But because it has a characteristic that has become rare in today’s financial world: it is not simultaneously someone else’s liability.

2022 was a major warning signal

A very important turning point was the year 2022.

After Russia’s attack on Ukraine, large parts of Russia’s foreign currency reserves were blocked in the West. For many states, this was a key moment with a strong signalling effect.

Suddenly, it became visible: anyone holding dollars or euros does not only hold financial value. They also hold value that can be affected politically.

That does not mean these systems are fundamentally wrong. But it does show a vulnerability. Wealth held in foreign currencies is always also dependent on foreign political decisions.

And this is where physical gold becomes interesting.

Gold that is held in the country itself, or at least in a secure storage location, cannot simply be booked away digitally. It cannot be printed at will. And it is not someone else’s debt.

For central banks, 2022 was therefore more than a crisis year. It was a warning signal. And many states responded to this signal with gold purchases.

Central banks are building gold systematically

The development is very clear: since 2022, central banks have not only bought gold once. They have continued to build their gold reserves systematically.

In 2022, central banks around the world bought an exceptional amount of gold. Around 2.6 times as many tonnes as in the previous year. This high level remained roughly in place in the following years.

In 2025, the tonnage fell slightly. At the same time, the value of gold was much higher. So when the purchases are viewed in currency terms, the importance remains high.

The decisive point is not only the number of tonnes. The decisive point is the direction.

Central banks are not buying gold out of nostalgia. They are doing it for strategic reasons. Because gold has characteristics that are especially valuable for states.

Gold is scarce. Gold cannot be created at will. Gold is recognised worldwide. Gold is independent of a state’s creditworthiness. And gold is not tied to the policy of one single country.

For states, this is attractive. It allows them to hold part of their reserves in something that makes them more independent. In something that does not also belong to someone else at the same time.

Poland as an interesting example

Poland is a particularly interesting example.

In recent years, Poland has been one of the most active gold buyers in the world. The country has significantly expanded its gold reserves and has sent a clear signal: gold is understood as a strategic reserve.

In 2025, Poland was even the country with the strongest net gold purchases. Germany, by contrast, recorded slight outflows in the same year.

That is noteworthy because Poland is not a state outside the Western system. Poland is an EU member and part of the Western alliance framework. And yet the country is expanding its gold reserves.

That is what makes this example so important. It shows that gold is not only a topic for countries that consciously distance themselves from the West. Gold is also a topic for countries within the Western system that want to position their reserves more broadly and more independently.

How states can influence the gold market

Gold is a free market. But it is not separate from politics.

States cannot simply control the gold market at will. But they can influence it. And they can do so on several levels.

One possibility is sanctions. If trade routes are blocked or certain actors are excluded, supply and demand change.

A second possibility is currency policy. Gold is usually traded internationally in US dollars. If the dollar is strong, gold can become more expensive for buyers outside the dollar area. If the dollar weakens, gold often becomes more attractive.

A third possibility is interest rate policy. Gold does not pay interest. When interest rates are high, this can weigh on the gold price in the short term. When rate cuts are expected, gold often becomes more interesting again.

Then there is the topic of inflation. Gold is seen by many people, and also by states, as protection against a loss of purchasing power.

And there is regulation. States can influence how gold is traded, stored, valued or accepted. This is often less visible than an interest rate move. But for the market, it can be very important.

Why the LBMA is so important

This is where the LBMA also comes into play, the London Bullion Market Association.

At first, that sounds technical. But at its core, it is about trust.

The LBMA sets standards that have enormous significance worldwide. It is about quality, tradability and acceptance. If gold is recognised as Good Delivery, it is easier to trade internationally.

You can therefore think of the LBMA as a quality and trust filter for the global gold market.

This matters because gold is not only a metal. Gold is also a market product with standards. Banks, dealers and refineries orient themselves around these standards.

If rules become stricter, if recognition becomes more difficult, or if certain market participants are excluded, this can influence trust and liquidity.

That is why the LBMA is not a side issue. It is part of the infrastructure through which gold is accepted globally.

Paper gold and physical gold are not the same

Another important point is the difference between the paper market and the physical market.

The paper market is faster, larger and more abstract. It works with claims, contracts and price signals.

The physical market is slower, more tangible and more real. It is about goods, storage, transport and actual availability.

The two markets are not the same. But they are closely connected.

When state rules, market standards or regulatory requirements change, the paper market is often affected first. But the effect does not stop there. In the end, the physical market can also be touched by it.

That is why regulatory changes in the gold market matter so much. They are rarely only technical. They often also have a political dimension.

What this means for you as a private investor

For you as a private investor, this means: gold is not only a price question. Gold is an attitude towards wealth.

If you understand gold as a physical part of your wealth, you also understand why it matters in politically uncertain times.

Physical gold has one advantage that no paper substitute can fully replicate: you really own it.

It is there. It is tangible. It is not a payment promise. It is not a claim against a bank. And it does not depend on the solvency of an issuer.

In a world where trust is constantly being renegotiated, that is a very significant value.

Of course, gold does not replace a well-thought-out wealth structure. And this article is not individual investment, legal or tax advice. Especially when it comes to storage, taxation or your personal structure, individual questions should be clarified with a qualified tax adviser or specialist adviser.

But as a component, gold can have a very clear function: stability, independence and real ownership.

A calm perspective: gold is more than a chart

Gold does not automatically protect you from every development. But gold has one characteristic that many other assets do not have: it is not someone else’s payment promise.

The developments since 2022 show this very clearly: when you look at gold, you should not only look at the price. What matters is the wider structure behind it: ownership, storage location, political dependencies, market standards and long-term wealth planning.

My calm recommendation: look at gold not only as an investment, but as a physical component within your wealth structure. Not out of fear. Not under pressure. But with clarity about ownership, availability and independence.

For a deeper look at this topic, it is worth approaching the subject with calm and structure. Not from fear. Not from pressure. But with clarity about physical ownership, storage and strategic wealth protection.

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Note: This article is for information purposes only and does not replace individual advice or tax/legal review.