Central banks expand gold holdings and rearrange overseas storage

Central banks are increasing gold reserves and shifting bullion between international vaults, with new industry data showing a sharp rise in purchases and growing interest in reducing dependence on individual storage centres.

The World Gold Council says official institutions bought an average of approximately 1,000 tonnes annually over the four years preceding its 2026 survey, compared with roughly 500 tonnes a year during the previous decade. That represents a doubling, rather than the fourfold increase suggested in claims circulating online.

The distinction matters because purchases and transfers measure different activities. Moving existing gold from New York to London or domestic vaults does not increase a country’s holdings, while buying additional bullion need not involve moving reserves out of the United States.

The Netherlands has provided one of the clearest examples of changing custody arrangements. De Nederlandsche Bank announced on 2 September that it had reallocated approximately 86 tonnes of gold from New York and Ottawa to London during operations conducted between March and August.

The bank said the adjustment would improve access to readily tradable bullion during severe crises, citing heightened geopolitical uncertainty. Its London allocation increased from 18.1% to 32.1% of reserves, while the shares held in New York and Ottawa declined to 18.5% each.

The transaction was not a straightforward physical shipment of 86 tonnes across the Atlantic. Approximately 59 tonnes were sold in New York and replaced with gold in London. More than 27 tonnes were physically transported from North America to the Netherlands, with a comparable quantity subsequently transferred from Dutch storage to London.

The Dutch central bank retained substantial reserves in North America. Its decision therefore reflected an effort to distribute holdings across markets rather than abandon American custody altogether. London offers an established bullion market where gold can be traded or mobilised comparatively quickly.

France also changed the location of part of its reserves through transactions involving 129 tonnes previously held in New York. The Banque de France sold that bullion and acquired equivalent holdings in Europe, rather than describing the operation as a direct physical repatriation. Its stated rationale included upgrading the quality of its gold holdings.

The World Gold Council’s survey, published in June, found that 9% of responding central banks had increased domestic storage during the preceding 12 months, compared with 5% in the previous survey. Another 10% had diversified overseas storage locations, against 2% previously.

Those findings indicate a broader reconsideration of custody arrangements, but they do not establish that central banks worldwide are collectively withdrawing all their gold from the United States. Some institutions are bringing bullion home; others are moving it between established foreign financial centres.

The survey also found that a record 45% of respondents expected their own gold reserves to increase over the following year, while only 1% anticipated a decline. Respondents identified crisis performance, diversification and protection against geopolitical risks among the reasons for holding the metal.

Nearly three quarters expected the US dollar’s share of global reserves to fall moderately or significantly over five years. Such expectations describe institutional sentiment, however, rather than a confirmed reduction in dollar holdings or evidence of coordinated policy among central banks.

Actual purchases have fluctuated considerably. World Gold Council figures show net official-sector buying of 289 tonnes in the second quarter of 2026, up 62% from the corresponding quarter a year earlier and substantially above the revised first-quarter total of 57 tonnes.

Despite that rebound, first-half net demand reached 345 tonnes, the lowest first-half figure since 2022. Sales by some institutions earlier in the year weighed on the aggregate, underscoring the difference between longer-term accumulation and individual quarterly results.

Poland and China contributed to second-quarter buying, while Turkey’s sales moderated and Russia remained a sizeable seller. These contrasting transactions show that reserve decisions vary according to domestic financial requirements, liquidity needs and individual institutions’ assessments of risk.

Storage preferences remain similarly mixed. The Bank of England was the most frequently selected vaulting location in the 2026 survey, cited by 57% of respondents, followed by domestic storage at 49%. The Bank for International Settlements was selected by 16%.

Looking ahead twelve months, 7% of respondents planned to increase domestic storage and 9% intended to diversify overseas vaulting locations. The survey allowed institutions to identify multiple locations, reflecting the practice of spreading bullion across different custodians.