What is gold, and why are central banks buying it?

Gold is money without a government. No central bank can print more of it. For thousands of years, gold has served as a store of value. Today, governments and investors hold it against currency risk, inflation, and geopolitical shocks. In 2025, the world mined about 3,300 metric tons, according to the USGS. China led with 380, followed by Russia with 310 and Australia with 280. Ghana, Africa's largest producer, mined about 150. But the real gold rush is inside central banks. In 2025, central banks bought a net 863 metric tons, according to the World Gold Council. Poland led with 102 tons. Kazakhstan added 57, Brazil 43, and China 27. The price? Gold averaged $3,431 per troy ounce in 2025 on the London benchmark, up 44% from 2024. The geopolitical shift? Countries are diversifying their reserves beyond foreign currencies and government bonds. Gold carries no issuer's credit risk, although its price can fall sharply. My forecast: central banks remain net buyers of at least 500 metric tons of gold every year through 2030. Gold stays a strategic reserve asset, not a relic of the past.