Central Banks, Bar & Coin Demand Fuel Physical Gold Momentum in 2025

By Franklin Metals Group

Why Gold Movement Matters Now

Gold is gaining traction not just as a financial hedge, but as a tangible store of value. According to recent data, global demand for physical gold—including bars and coins—experienced its strongest first half since 2013, notably driven by robust interest across Asia  . Concurrently, central banks remain major players, adding 244 tonnes to reserves in Q1 2025—24% above the five-year quarterly average  .

This trend underscores the growing importance of physical ownership—not just in wealth preservation, but also as a cornerstone asset in uncertain times.

What’s Pushing Physical Gold Demand?

• Institutional Confidence: Central banks continue to secure gold as a strategic reserve, signaling long-term faith in its value.

• Investor Appeal to Tangibility: With economic uncertainty and currency instability on the rise, literal possession of gold bars and coins provides reassurance that paper instruments just cannot replicate.

• Geographic Momentum in Asia: Many Asian markets—particularly India and China—are experiencing surging interest in physical gold, often shaped by cultural and practical uses  .

• Jewelry Weakness, Physical Strength: High market prices have dented jewelry demand, but those cost pressures are a driver for investment through bars and collectible coins, which still offer liquidity and reliability  .

What This Means for Investors

Staking Claim in Tangible Assets

With bar and coin gold demand hitting multi-year highs, physical ownership offers a strategic edge. It ensures you have real, tangible wealth that holds value through market cycles.

Diversification Beyond Paper

Increasing physical holdings complements standard financial portfolios with an asset that’s impervious to digital risks and systemic failures.

Secure Long-Term Planning

For long-term wealth preservation, physical gold—especially when backed by secure handling—is a prudent anchor in volatile times.

How Franklin Metals Group Supports You

• Certified Sourcing: Investment-grade bars and coins, ready for secure ownership or gifting.

• Recycling & Refinery Services: Turn in scrap or old bullion for certified silver and gold—recovering value responsibly.

• Logistics & Storage: Fully secured vaulting and transport solutions to protect your tangible assets.

Final Thoughts

2025 is emerging as a standout year for physical gold. With central banks, global investors, and Asian markets all stepping up demand—and jewelry lagging under price fears—bar and coin ownership is emerging as the premium route to preserving wealth. Franklin Metals Group is committed to helping you navigate this shift with clarity and confidence.

Sources:

• Record H1 physical gold demand across the globe—strongest since 2013 

• Central banks drive significant reserve growth in Q1 2025 

• Asia leads physical bar and coin demand; jewelry demand softens