Why Central Banks Are Buying Gold — And What It Means for Gold & Silver Investors
By Franklin Metals Group
Global central banks are making bold moves — shifting reserves away from the U.S. dollar and further into gold. This isn’t just a shift in policy; it’s a clear message about the long-term confidence in precious metals. For both gold and silver investors, this movement marks a turning point.
A Historic Move Toward Gold
According to the latest World Gold Council survey, 95% of central banks say they plan to increase their gold reserves within the next year — the highest level since 2018. Simultaneously, around 73% expect their U.S. dollar holdings to decline over the next five years.
This reflects a growing concern about overreliance on the dollar amid global tensions, inflation, and long-term economic uncertainty.
Gold Becomes a Core Global Reserve Asset
In 2024, central banks purchased over 1,000 metric tons of gold, more than double the average seen a decade ago. Total official reserves now exceed 36,000 tonnes, bringing global holdings close to 1960s levels.
The European Central Bank (ECB) recently confirmed that gold has overtaken the euro as the second-largest reserve asset globally — reinforcing its critical role in global monetary policy and diversification.
Silver’s Position in This Environment
While gold grabs headlines, silver stands to benefit from this rebalancing of trust away from fiat currencies. Two key drivers support its growth:
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Rising industrial demand — Silver is critical in solar panels, semiconductors, electric vehicles, and medical equipment.
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Investor spillover — When gold rises, silver often follows as a more accessible hedge and store of value.
Together, these dynamics reinforce silver as more than a secondary metal — it’s a strategic piece of any diversified portfolio.
What This Means for Franklin Metals Group Clients
For investors: Central bank accumulation affirms gold’s role as a safe-haven. It’s a smart time to build or rebalance positions in both gold and silver.
For industrial clients: Higher global demand may tighten supply chains. Planning ahead for sourcing or refining is essential.
For recyclers and refiners: The widening gap between gold prices and scrap rates creates new opportunities to unlock hidden value in unused materials.
How Franklin Metals Group Can Help
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Certified sourcing of high-quality investment-grade gold and silver
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Secure, insured logistics and long-term storage support
We help you turn macro trends into actionable strategies — whether you’re investing, sourcing, or recovering.
Final Thoughts
Central bank gold buying isn’t a temporary trend. It signals a long-term revaluation of gold’s role in the global financial system. And as confidence in traditional currencies fluctuates, both gold and silver are becoming more essential than ever.
Franklin Metals Group is here to guide you through it with clarity, confidence, and precision.
Sources:
World Gold Council 2025 Survey: 95% of central banks expect to boost gold holdings
Finance Yahoo / ECB update: Gold now second-largest reserve asset globally