Why every country suddenly wants its gold back

‘Pervading sense of uncertainty’

In an increasingly unstable world, the location of gold storage is paramount if the global order breaks down or a typically reliable country goes rogue.

Ned Naylor-Leyland, of Jupiter Asset Management, said: “When you think about gold, the only thing that matters is where it is, who has it and is there an encumbrance with a chain of ownership issue.

“Central banks understand that point, and they think, ‘you know what, we’ll have our gold back and we’ll look after it ourselves’.”

But while the World Gold Council’s survey points to an increase in repatriation, in part owing to populist politics and a changing global outlook, the Bank’s holdings in gold have increased every month since November last year.

The Bank’s website shows that the weight of gold in its custody is at its highest point since at least September 2022.

Ross Norman, of Metals Daily, said London retained “primacy” in gold markets, despite competitors such as Dubai, Singapore and Hong Kong looking to steal its crown.

“The Bank of England’s gold holdings are rising,” he added. “It’s a reflection that there’s an awful lot more gold being bought by central banks: some is being held in London, which is increasing, and a lot more is going home to their domestic countries or into other locations.

“What it tells you is the pervading sense of uncertainty about the world at the moment – hence buying gold, and hence holding in different jurisdictions.”