When it comes to gold demand, we usually discuss investors, collectors, and industries. There’s another massive sector dominating the market in 2025, however—central banks.

We at AU Bullion Canada have seen gold interest spike in our market during the year, and it’s not solely being fueled by retail buyers. Central banks globally are stockpiling gold at record levels, and it has profound implications for individual investors.

So, why are central banks doubling up on gold in 2025? This is what you should know.

1. De-Dollarization and Diversification

The US dollar has been the global reserve currency for decades, dominating trade and finance in the global system. Yet, there is growing interest from central banks to diversify away from the dollar because of economic uncertainty and tensions in geopolitics.

These nations have been rapidly accumulating gold as part of de-dollarization efforts. Increased possession of gold by these nations allows them to decrease the reliance of their economies on the US dollar and insulate them against currency fluctuations.

2. Hedge Against Economic Uncertainty

As worldwide inflation increases, rates rise, and economic growth languishes in large economies, central banks are increasingly looking to gold as a haven asset. Gold does not lose value like paper currency and is not pegged to any particular economy.

This makes it an urgently important instrument for maintaining national wealth during unstable economic times. Central banks are aware of this—and they’re responding in kind.

3. Geopolitical Tensions and Trade Wars

From the Russia-Ukraine situation to US-China trade tensions, geopolitical risks are at peak levels in 2025. Such tensions relate to global trade, affect currency fluctuations, and bring about economic uncertainty.

For central banks, gold is one means of minimizing risk exposure and protecting national wealth in the context of international turbulence.

4. Record-Breaking Demand and Supply Issues

Central bank gold purchases have reached all-time highs in recent years. Central banks have bought in excess of 1,000 tonnes of gold during 2023, and this trend has carried through to 2025.

With such high demand, the gold supply has constricted, setting the stage for bullish prices in the metal. This is good news for individual investors, too, so now is a great time to include gold in your portfolio.

5. Financial Sanctions Protection

Sanctions have emerged as a potent tool of contemporary geopolitics, and nations seek to insulate themselves from possible financial isolation. With gold holdings, central banks are able to minimize dependence upon the US-dominant financial system and safeguard holdings from freezing and seizure.

This is particularly relevant to nations such as Russia and Iran, which have experienced widespread sanctions in the past few years.

What Does This Imply for You as an Investor

So why do you care about central banks holding gold? Here’s why it matters:

Stronger Price Support: Higher demand from central banks fuels long-term price increases.

Increased Safe-Haven Status: Gold is still at the core of safeguarding assets during economic and geopolitical instability.

Lower Supply, Higher Premiums: With central banks purchasing gold increasingly, it will lower supply, which will push premiums higher for individual investors.

How to Begin Stacking Gold

If you take inspiration from central banks, include some of the following gold investment products in your portfolio:

• 1oz Gold Bars for long-term wealth preservation
• Global recognition and global liquidity, Gold Maple Leaf Coins
• Small denomination gold bars such as 1 Gram or 2.5 grams, for flexibility 

We have at AU Bullion Canada a broad selection of investment-grade gold, with real-time pricing, secure shipping, and convenient pick-up locations in Vancouver and Brampton. 

Final Thoughts 

Central banks aren’t merely purchasing gold—hoarding it, really. That is one very clear indication that even the global economy’s largest institutions have come to realize gold is an integral resource to economic health and protection of wealth. Ready to invest in gold for yourself? Come see us at AU Bullion or stop by one of our locations in person to browse our entire selection of gold.