As wars spread, trade tensions escalate and inflation remains stubbornly high, governments around the world are quietly buying more gold, a sign many are preparing for a future they believe will be more uncertain.
A new World Gold Council survey found that 89% of central banks expect global gold reserves to grow over the next year, while a record 45% plan to add to their own holdings. Central banks are the institutions that manage a country's money and financial reserves.
For everyday Americans worried about rising prices, growing government debt and what comes next for the economy, the trend is worth paying attention to.
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Some experts say central banks buying more gold is a sign they expect today's economic and geopolitical uncertainty to stick around.
That's because gold has long been considered a safe place to put money during wars, market turmoil and periods of high inflation because it isn't tied to the economy or policies of any one country.
For decades, central banks have invested heavily in U.S. Treasurys — government debt backed by the U.S. and considered among the world's safest investments.
But Cavatoni said many countries are now adding gold because they want another layer of protection against inflation, global instability and economic turmoil.
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"They're looking at diversifying," Cavatoni said. "And gold fills that need because it provides liquidity, diversification and protection against inflation and geopolitical uncertainty."
The World Gold Council survey backs that up.
About 90% of central banks said gold's performance during times of crisis is one of the main reasons they hold it. Another 84% cited its role as a long-term store of value and inflation hedge, while 83% said it helps diversify their reserves.
Those reasons have fueled a global buying spree.
While China has received much of the attention, it isn't alone. Central banks around the world have been steadily increasing their gold reserves.
According to Cavatoni, Poland, Uzbekistan, Kazakhstan, the Czech Republic, Chile, Jordan and Ghana have also been among this year's biggest buyers.
While the United States still owns more gold than any other country, much of today's buying is coming from developing economies looking to rely less on foreign currencies they don't control.
"The U.S. has no natural need to continue to accumulate more reserves in the form of gold," Cavatoni said.
The survey also found that nearly three-quarters, or about 74%, of central banks expect the U.S. dollar's share of global reserves to be lower five years from now, while they expect gold's share to increase.
The same concerns driving governments to buy gold are also attracting individual investors.
One trend that surprised Cavatoni is that even with gold trading near record highs, people aren't rushing to sell.
"It tells me a couple of key things," Cavatoni said. "People are less likely to let go of their gold."
For everyday investors, the trend doesn't necessarily mean they should rush out and buy gold. But it does offer a window into how some of the world's largest financial institutions are preparing for uncertainty, with central banks placing greater value on diversification and protection against economic and geopolitical risks.
And individual investors appear to be showing a similar mindset.
Instead of cashing in, both investors and many central banks are holding on to or building their gold positions, a sign that they see gold less as a short-term investment and more as long-term financial insurance in an increasingly unpredictable world.
