As global central bank gold reserves approach levels seen during the Bretton Woods era, their purchasing channels and storage strategies are undergoing profound changes.

According to a macro deep-dive report published on December 26 by the analyst team led by Zhou Junzhi at China Securities Co., Ltd., 2025 is an unavoidable year in gold's history. Current global central bank gold reserves have reached 36,000 metric tons, nearing the peak levels of the Bretton Woods system era. Calculated at market prices, "the value of gold has already surpassed $4 trillion." More symbolically significant is that "last year, gold's share of global foreign exchange reserves rose to 20%, surpassing the Euro's 16%, and becoming the world's second-largest reserve asset, second only to the US dollar at 46%."

Against the backdrop of sharply rising gold prices, central banks, as a "purchasing force that cannot be ignored," are seeing their operational details come under intense market scrutiny. The report points out that in recent years, central bank gold purchases have not only been large in scale and fast in pace but have also exhibited unconventional operations such as "gold repatriation." However, the market often lacks a systematic understanding of micro-level details, such as how central banks buy gold and where they store it. In particular, "the data provided by the commonly referenced World Gold Council does not represent the full picture of central bank purchases," as some increases based on strategic需求 are hidden outside traditional tracking channels.

The Secretive Buyers: How Do Central Banks "Sweep Up" Gold? Analysts Zhou Junzhi and Chen Yi from China Securities Co., Ltd. deconstructed the micro-mechanisms of central bank gold purchases in their report. Central banks primarily increase their gold holdings through two methods: firstly, via the global over-the-counter (OTC) market, and secondly, by purchasing gold produced domestically.

London OTC Market's "Non-Physical Movement" The World Gold Council indicates that "the most common way for central banks to add gold to their international reserves is by purchasing it on the over-the-counter (OTC) market."

This occurs mainly in the London market, where central banks trade through banks certified by the London Bullion Market Association (LBMA). Notably, these large-scale transactions are often conducted quietly. The report describes: "In the London market, a significant volume of gold trading is completed via 'non-physical movement.' When a central bank purchases gold from a counterparty, the gold bars themselves may not physically change location; instead, only the ownership is transferred within the clearing system."

"Invisible" Local Direct Procurement Besides the international market, some resource-rich countries opt for a "proximity advantage."

The report cites examples such as the Central Bank of the Philippines, which "purchases unrefined gold directly from small-scale domestic producers," and the Central Bank of Uzbekistan, which "holds a priority right to purchase gold produced locally." The key feature of this model is its隐蔽性: "Purchasing gold through non-LBMA channels does not utilize foreign exchange reserves and typically does not result in changes to the country's holdings of US Treasuries. Local direct procurement also usually does not involve changes in trade flows, making it relatively more difficult to track."

Furthermore, central banks rarely purchase gold through ETFs. The report emphasizes that due to requirements for security and liquidity, "it is difficult for central banks to use gold ETFs as a mainstream channel to increase gold exposure," as ETFs introduce credit risk from the issuing institution and custodian bank, which contradicts the "central bank requirement for 'zero credit risk' in reserve assets."

Where Does the Gold Go: The Three Pillars of Global Custody After purchasing gold, storage becomes another strategic issue. The report states, "The global storage and management of gold is a diversified system comprised of central banks, commercial banks, and professional custodian institutions."

Currently, the global custody of central bank gold has formed a three-pillar structure: the Federal Reserve Bank of New York, the Bank of England, and the Bank for International Settlements (BIS). This格局 is "the result of historical choice, market practice, and geopolitical factors combined."

Federal Reserve Bank of New York: It possesses the world's largest gold vault. The report states, "After World War II, the Bretton Woods system established the peg of the US dollar to gold. For transactional convenience, countries stored their gold in New York, creating a path dependency."

Bank of England: As a global center for gold pricing and trading, its vaults hold substantial amounts of gold for official use.

Bank for International Settlements: Known as the "central bank for central banks," although it does not operate its own vaults, it provides crucial custody and settlement services.

Although not all countries disclose details, estimates from Singapore-based precious metals trader Bunker Group suggest that "the United States and the United Kingdom are the world's largest custodians of gold, jointly storing approximately 53% of global gold reserves."

Strategic Shifts: "Gold Repatriation" and Data Black Boxes In their choice of storage models, central banks are exhibiting clear strategic divergence, primarily falling into three patterns:

Domestic Storage (Emphasizing Sovereignty): Examples include China, Russia, and France. The report mentions, "The vast majority of China's gold reserves are held domestically, with a small portion potentially stored at the Bank for International Settlements or other financial institutions with strategic cooperative relationships, likely for international transaction needs."

Dispersed Storage (Balancing Risk): European countries like Germany and Italy, for historical reasons and liquidity management, disperse their gold holdings across locations such as New York and London.

Non-Disclosure of Location: Examples include Japan and Thailand.

A notable market signal is the trend of "gold repatriation." The report points out, "Against the backdrop of heightened awareness of financial sovereignty, central bank gold reserves are also undergoing dynamic rebalancing." Typical cases include Germany, which between 2013 and 2017, "repatriated 674 metric tons of gold from New York and Paris in batches," and the Reserve Bank of India, which in 2025, "moved over 65% of its gold reserves to domestic storage."

This strategic adjustment has led to a "black box" effect in market data. The report analyzes that there are periodic discrepancies between World Gold Council data and IMF reporting data. On one hand, due to security concerns, "some central banks may delay or choose not to publicize their purchasing activities, leading to an underestimation in IMF 'reported data'." On the other hand, purchasing channels outside the LBMA system (such as using local currency to buy domestically produced gold) fall outside traditional monitoring systems. This implies that the public data seen by investors may represent only a part of the true global central bank gold purchasing landscape.