Bank of America Report: Additional Gold Purchase Potential of Central Banks

Bank of America stated that central banks increasing the share of gold in their reserves could continue to support the global gold market. According to the institution's model, it is calculated that central banks wishing to raise the share of gold in their reserves to 30 percent could make a total additional gold purchase of 20,333 tons.

Efficient Reserve Allocation Model

According to Bank of America's efficient reserve allocation model prepared for central banks, an allocation where gold constitutes 30 percent of total reserve assets was accepted as a reference.

It was stated that when central banks whose share of gold in their reserves is already 30 percent or more are excluded from the calculation, the potential purchase amount rises to 20,333 tons.

Potential in China and Other Countries

While it was expressed in the Bank of America model that the highest purchasing potential is in China, the country needs to buy approximately 5,628 more tons of gold to reach this ratio.

China is followed by Japan with an additional potential of 1,866 tons and Switzerland with 1,192 tons, while Taiwan, South Korea, Saudi Arabia, and Singapore are also on the list.

Central Banks' Demand for Gold

It was emphasized that after Russia's invasion of Ukraine, the gold demand of central banks has become more decisive in the market.

According to World Gold Council data, global official gold reserves stand at approximately 36,705 tons, while net gold purchases by central banks broke a record in 2024 with 1,092 tons.

Turkey Ranks First in Purchases

It was recorded that Turkey ranks first in central bank gold purchases realized since March 2022.

The Central Bank of the Republic of Turkey purchased 815 tons of gold during this period, while Poland ranked second with 808 tons.