Why Central Banks Are Buying Gold Like Never Before

For the past three years, central banks around the world have been quietly hedging against a monumental shift - by buying more than 1,000 tonnes of gold annually, a pace not seen in over half a century. According to the World Gold Council, 2022 marked the highest level of central bank gold demand on record, with 1,136 tonnes added - surpassing even Cold War-era stockpiling. This trend isn’t driven by fear alone, but may be part of a strategic shift as global power players hedge against U.S. dollar risk, geopolitical volatility, and systemic instability. In this post, we explore why this unprecedented wave of central bank gold buying is more than a signal - it's a structural change investors can’t afford to ignore.

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In our latest podcast, Aaron welcomed Lobo Tiggre who dropped a line halfway through the conversation that long term investors should take note of:

“That gold is not there to make you rich. That gold is there to prevent you from becoming poor.”

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He wasn’t speaking as a maximalist or a newsletter salesman. He was speaking as a realist—one who has spent decades tracing gold’s role from ancient stores of wealth to its modern reincarnation as a tool of financial sovereignty.

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And right now, we are living through a historic resurgence of central bank gold buying.

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The trend is not theoretical. It’s not a rumor on X. It’s happening—and it’s happening in size.

The Shot Heard ‘Round the World: When Gold Became Political Again

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According to Lobo, the moment the U.S. weaponized the dollar through sanctions against Russia, a silent alarm was triggered around the world. What was once considered an apolitical, stable reserve currency suddenly looked risky to hold.

“The weaponization of the dollar after the second invasion of Ukraine by Russia was a financial shot heard ‘round the world. Even the Germans started asking for their gold back.”

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The result? A surge in central bank gold buying across the globe - from the BRICS nations to developed economies. While mainstream media focuses on equity markets, central bankers are accumulating physical gold at the fastest pace in over 50 years.

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They’re not doing it for yield. They’re doing it for protection.

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Why Central Banks Are Buying Gold: Not for Profit, But for Power

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Tiggre frames this move as one of strategic insurance:

“Even if you take the least case—just a defensive measure after the weaponization of the dollar—it’s still very bullish for gold.”

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This buying isn’t speculative. It’s structural. Central banks aren’t looking to make quick returns—they’re trying to insulate their nations from geopolitical and monetary instability.

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China, Turkey, India, and even countries like Poland are stacking bullion. The message is clear: in a world of fractured alliances and rising economic nationalism, gold is once again the asset of last resort. This is not about ideology. It’s about survival.

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Gold vs. Silver: A Divergence Accelerated by Central Banks

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Lobo drew a firm line between gold and silver, particularly in light of central bank gold buying:

“Reality tells us silver’s use case is changing. It’s taking on more and more of an industrial role.”

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Gold, on the other hand, will soon be recognized by policymakers and monetary authorities as a Tier 1 reserve asset. Basel III confirms it. Central bank vaults confirm it. July 1st everything changes and central banks are racing to prepare.

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Silver bulls may hope for the old monetary correlation to return, but the world is clearly choosing gold for its strategic and monetary properties. If you’re a speculator, ignoring this shift could results in underperformance and confusion.

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BRICS, De-Dollarization, and Gold as the Trust Anchor

Another major theme emerging from our discussion was the potential for a gold-backed BRICS currency. While Lobo was cautious about the near-term hype, he acknowledged the logic behind it:

“If you’re Russia and China, and you don’t trust each other, backing a shared currency with something real and verifiable makes perfect sense.”

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Even if a formal BRICS currency doesn’t materialize soon, the trend of de-dollarization is very real. It’s not about destroying the dollar overnight—it’s about slowly reducing reliance on it.

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And as countries move away from the greenback, what are they reaching for? You guessed it: gold.

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Trump, Tariffs, and the New Era of Economic Nationalism

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Lobo also highlighted the impact of Donald Trump’s economic policies on the global order:

“Trump is trying to change the global economic order—not just America’s.”

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Whether or not Trump returns to office, the policies he advanced—tariffs, trade wars, and manufacturing reshoring have triggered long-lasting effects. Allies are reevaluating relationships. Trade partners are looking for monetary independence.

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In that kind of world, central bank gold buying is not just smart policy—it’s necessary.

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Where This Leaves the Speculator

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So what does this mean for those of us looking to profit from these macro shifts?

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For Lobo, it’s about positioning. While some jurisdictions like Red Lake, Ontario or Nevada offer stability, premiums can scare off some investors. Instead, Lobo believes the best opportunities lie where political risk is misunderstood, but the trend—especially in gold—is undeniable.

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He singled out Argentina as a rising star. Chile, once a concern, is stabilizing. Even Mexico, while not fully cleared, is showing signs of cooperation.

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But more important than geography is recognizing the macro floor being set under the gold price:

“If central bank buying is putting a floor under gold, they don’t care what the Fed does next. That’s extremely bullish.”

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The institutions with the longest time horizons are voting with their vaults.

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The Wrap: The New Age of Monetary Realism

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The average retail investor may be chasing meme stocks or the latest AI surge. But behind the curtain, the stewards of national economies are making their move.

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Central bank gold buying isn’t just a footnote. It’s the new foundation.

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Ignore it, and you might find yourself on the wrong side of the biggest monetary realignment in decades. Recognize it, and you position yourself not just to survive the next crisis—but to thrive when it hits.

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Because, as Lobo reminded us:

“Gold’s not there to make you rich. It’s there to stop you from becoming poor.”

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That may be the most investable insight of all. And anyone whose taken that advice over the past two decades has done quite well.

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