The Gold Gambit. NBP Is Buying Record Amounts of Gold

Poland’s central bank began accumulating gold on a large scale in 2018. For many years, our reserves remained at 100 tonnes, but now they stand at 530 tonnes. NBP Governor Adam Glapiński is aiming to increase the reserve share of this valuable commodity to 30 per cent.

History has come full circle: the amount of this precious metal held by central banks has returned to the level last seen when the gold standard was abandoned in the 1970s. It is an understatement to say that Poland is one of the largest gold buyers. In fact, last year, Narodowy Bank Polski purchased more gold than any other central bank. During a conference in October, Adam Glapiński, Governor of Narodowy Bank Polski, announced an increase in the share of this metal in reserves from 20 per cent to 30 per cent. Its current share stands at nearly 25 per cent.

More and more gold

Poland’s central bank began accumulating gold on a large scale in 2018. Before this, our reserve levels had remained consistent at 100 tonnes, but by the close of 2019, they had increased to 228 tonnes. Poland entered the pandemic with twice as many reserves of this precious metal, a decision that proved to be very wise. Gold is widely regarded as a safe investment option in times of market volatility. The COVID-19 pandemic and resulting economic lockdowns represented such a moment. At that time, the price of gold rose for the first time in years, from around USD 1,500 per ounce to USD 2,000.