Gold remains one of the key pillars of the global financial system this year. Central banks around the world continue to use it as a safe option during turbulent geopolitical times, as protection from inflation and geopolitical risks, and as a tool for monetary stability. The largest share of reserves, 60%, is held by the U.S. and European countries.
According to the World Gold Council, over the past three years, central banks have been buying gold at a record pace, and this trend continues this year. For central banks, gold reserves are particularly important due to security, liquidity, and revenue. According to the Council’s reports, their reserves account for one-fifth of the total amount of gold mined throughout history.
Gold Is Not a Passive Reserve
Gold is not a passive reserve but a significant financial tool, as demonstrated by France, which has generated approximately 15 billion dollars in revenue from its gold reserves due to high gold prices, without changing the total amount held (about 2,437 tons). Moreover, France achieved this revenue not through gold trading, but because the value of its existing reserves increased as gold prices rose.
The latest data show that the United States leads with about 8,133 tons of gold in reserves, followed by Germany (about 3,351 tons), Italy (2,452 tons), and France (2,437 tons). Russia and China are also among the leading countries, each holding over 2,200 tons.
While they are buying gold to strengthen their financial stability, Russia is using its gold reserves as protection from international sanctions because, following the invasion of Ukraine, its access to global financial flows was limited.
Selimovic: “In 2024, We Bought Two Tons of Gold”
Regarding Bosnia and Herzegovina, half of the foreign exchange reserves of the Central Bank (CBBiH) are in gold.
“We currently have 3.5 tons of monetary gold, or 112,000 ounces. By the end of 2024, we bought two tons of gold. In the history of the Central Bank of Bosnia and Herzegovina, this is a record amount of gold reserves. Considering the prices and our limitations stated in our internal documents regarding the strategic allocation of foreign exchange reserves, we are not planning to buy additional gold at the moment,” the governor of the Central Bank of Bosnia and Herzegovina, Jasmina Selimović, told Forbes, adding: “3.5 tons may seem like a large or small amount to some, but if we look at the region, Serbia has the highest amount of monetary gold, followed by Slovenia. Bosnia and Herzegovina comes after Slovenia. So we are the third country in the region by the amount of monetary gold.”, Federalna writes.
