Central banks have been steadily increasing their gold holdings, and the pace has recently accelerated to levels not seen in decades. This chart from the Financial Times highlights global net purchases of gold by central banks going back to the 1950s. After a long period of net selling in the late 20th century, central bank demand began to pick up following the Global Financial Crisis. Since 2022, purchases have climbed even further. Several factors may be driving this shift, including efforts to diversify reserve portfolios, manage risk, and hedge against currency volatility. Global uncertainty, changes in trade patterns, and evolving monetary frameworks could all be contributing to the trend. Rather than short-term trading, this appears to be part of a broader strategy to build resilience in reserves. Gold remains one of the few assets held widely across countries and financial systems due to its historical role and liquidity. #GoldReserves #GlobalEconomy #CentralBanks #Macroeconomics #FinancialStability #PortfolioDiversification #MarketTrends #ReserveAssets #WorldEconomy #LongTermInvesting #SafeAssets #EconomicStrategy

Global reserve composition has changed significantly over the past century. In the early 1900s, gold made up nearly all international reserves. Over time, fiat currencies like the US dollar and euro became dominant as global trade and financial systems evolved. Recently, however, there’s been a modest resurgence in gold’s share of total reserves. This may reflect ongoing diversification efforts by central banks in response to shifting global dynamics, currency exposure, and long-term strategic planning. The chart shows how the composition of reserves isn’t static—it reflects broader macroeconomic and geopolitical developments, including technological change, global policy shifts, and cross-border capital flows. Could gold go back to 50%? #GlobalEconomy #CentralBanks #GoldReserves #ReserveAssets #MacroTrends #FinancialHistory #Diversification #GlobalMarkets #Currencies #gold #MonetaryPolicy #FinanceInsights #SafeHavenAssets