Investors in the United Arab Emirates are better positioned to profit from a subtle but significant change taking place in the world’s central bank vaults. As governments gradually lessen their reliance on the US dollar as the world’s default reserve asset, central banks have been buying more than 1,000 tonnes of gold every year for three years running, at a rate that is about twice as fast as the pre-2022 average.
Nearly three-quarters of central banks anticipate a moderate or significant decline in the dollar’s share of global reserves within five years, according to the most recent World Gold Council survey, the largest in the organization’s nine-year existence.
Most importantly, respondents don’t think the yuan or the euro will significantly close that gap; instead, the trend is primarily going toward gold. A record number of central banks now intend to increase their gold holdings in 2026, a significant increase from just two years ago. China, India, Turkey, and Poland are among the nations leading the accumulation.
The rationale behind this change is instructive. The vast majority of central bank reserve managers cited gold’s behavior during crises, its long history as a store of value, and simple diversification when asked why they keep it.
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