Poland announces plans for another expansion in Gold reserves

The National Bank of Poland has approved a plan to purchase even more gold.

On Tuesday (Jan. 20), the bank issued a statement saying it plans to purchase up to 150 more tonnes of gold, raising its holdings to a maximum of 700 tonnes.

Poland has been one of the world's largest gold buyers. Last fall, the Polish central bank announced plans to further increase its gold holdings and set a goal of 30 percent of reserves.

The new policy will allow the central bank to hold up to 700 tonnes of gold even if the value exceeds 30 percent of reserves.

The central bank did not set a timeline for reaching the goal.

Governor Adam Glapiński said the increase in gold reserves would elevate Poland to an “elite” status.

“This will place Poland among the elite 10 countries with the largest gold reserves in the world.”

Poland was one of the biggest gold buyers last year. It added another 12 tonnes of gold to its reserves in November, increasing the country’s official gold holding to 543 tonnes. That represented 28 percent of its total reserves based on gold prices at the end of November.

The Polish central bank already holds more gold than the European Central Bank. To put the country's gold reserves in context, in 1996, the NBP only held 14 tonnes of gold.

This is the third time Poland has raised its gold reserve target in the last few years. It initially announced an increase in its gold holdings in 2021. Then, in 2024, Glapiński indicated the central bank planned to increase its gold holdings to 20 percent of its reserves.

"This makes Poland a more credible country; we have a better standing in all ratings, we are a very serious partner, and we will continue to buy gold.”

When he initially announced plans to further expand Poland’s gold reserves, Glapiński called gold “the only safe investment for state reserves,” in these “difficult times of global turmoil and the search for a new financial order.”

In an interview in 2024, Glapiński said that it is not directly linked to any national economic policies, is a safe haven during crises, and retains its real value over the long term.

“It is a symbol of stability that enhances our credibility in the eyes of investors and foreign partners.”

According to the NBP’s website, gold is not a liability and carries no counterparty risk. Furthermore, its physical characteristics ensure durability and near indestructibility.

When he announced the initial plan to expand its gold reserves in 2021, Glapiński said holding gold was a matter of financial security and stability. 

"Gold will retain its value even when someone cuts off the power to the global financial system, destroying traditional assets based on electronic accounting records. Of course, we do not assume that this will happen. But as the saying goes – forewarned is always insured.
“And the central bank is required to be prepared for even the most unfavorable circumstances. That is why we see a special place for gold in our foreign exchange management process."

Glapiński also pointed out that “gold is free from credit risk and cannot be devalued by any country’s economic policy."

"Besides, it is extremely durable, virtually indestructible.” 

Poland has also brought some of its gold home. In 2019, the Polish central bank covertly moved 100 tonnes of gold from London vaults to a facility in Warsaw.

Poland isn’t alone in boosting its gold holdings.

On net, central banks globally increased their official gold reserves by 1,044.6 tonnes in 2024. It was the third-largest expansion of central bank gold reserves on record, coming in just 6.2 tonnes lower than in 2023 and 91 tonnes lower than the all-time high set in 2022. (1,136 tonnes). 2022 was the highest level of net purchases on record, dating back to 1950, including since the suspension of dollar convertibility into gold in 1971.

To put that into context, central bank gold reserves increased by an average of just 473 tonnes annually between 2010 and 2021.