Doubling of Gold Price Over 5 Years Sees Global National Reserves Hit $4.8 Trillion in October

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On October 7th, gold prices hit $3,977 per troy ounce, some 100% from where the price sat five years ago when the world was also facing a gamut of market uncertainties.

The precious metal climbed by $1,195 (approximately 45.4%) from $2,629 to $3,825 between September 2024 and 2025, following months of persistent inflation, sovereign debt increases, central bank purchases, geopolitical uncertainty, and a spike in the gold price seen in 2023 that was encouragingly never followed by a downturn.

The dramatic movement pushed global gold reserves far beyond $4 trillion in valuation, as central banks continued buying gold in large amounts led by Poland, Kazakhstan, China, and Turkiye which together bought 143.6 tonnes of gold. These were joined by the State Oil Fund of Azerbaijan (SOFAZ) which boosted its gold holdings by 34.5 tonnes, which it does as a hedge against drops in oil prices.

From the end of 2024, gold prices are up around 36%, while certain gold mining stocks have gained far more. Newmont Mining (NYSE: NM), the world’s largest gold mining company, has gained 110% valuation from a 52-week low in January, while a value investor may have seen other names like (NYSE: DRD) triple in price.

Despite these massive price increases, the global demand to own gold continues to be strong, with Best Brokers reporting from the World Gold Council’s September meeting that 2025 purchases are only slightly below those recorded from January to October in 2024.

The gains have seen large increases in valuations among current national gold holdings, with the US reserves, the largest in the world, toping $1 trillion, the first time in history such a valuation has been seen.

Switzerland’s gold reserves surged from $104 billion to $133.5 billion, a gain of 37%. Though holding substantially less gold than other large European economies like Germany and Italy, The country also holds the world’s largest gold reserves per capita, with 115.97 grams (3.73 troy ounces) per citizen, a value of around $14,245.

“The €4.01 trillion valuation of global gold reserves highlights the asymmetric impact of price surges across national portfolios. While the US and Western European powers see proportional gains primarily from revaluation, mid-sized economies like Poland, Turkey, and Kazakhstan achieve outsized increases through targeted physical acquisitions, suggesting a strategic diversification away from fiat currency exposure,” said Paul Hoffman, lead data analyst at Best Brokers.

“This behavior indicates a potential shift in global reserve management: countries are no longer passive holders but are actively calibrating gold reserves to hedge against both monetary and geopolitical risk, which could amplify volatility in demand and sustain price momentum even if macroeconomic conditions stabilize”.

“[E]ven if macroeconomic conditions stabilize” is an important point, since even if such stabilization occurs and capital movements shift back towards equities and bonds, there are now multiple members of the G7 and G20 economies that are above 100% debt-to-GDP ratios, putting tremendous strain on their ability to continue to pay for government and finance that debt without resorting to blanket increases in the money supply.

The US for example is now paying over $1 trillion a year just in interest on the national debt already accumulated, while already adding $2 trillion to that debt so far this year. Such a burden is replicated in Italy, France, the UK, Spain, Belgium, and Portugal, while beyond Europe, Canada and Japan, the latter of whom suffers from a 255% debt-to-GDP ratio, round up the most indebted wealthy nations. Gold is traditionally used as a safe haven asset against situations that include overleverage. WaL 

 

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