Italy remains one of the world’s major gold powers, with 2,451.8 tonnes of gold stored in its vaults. Thanks to the extraordinary rise in gold prices in 2025, the value of the Bank of Italy’s reserves has surged to unprecedented levels, reaching €288.42 billion as of October 16. Since early May, this represents an increase of approximately €54 billion.
This is an enormous value in absolute terms, but still only a small portion compared to Italy’s public debt, which exceeds €3 trillion.
Despite being only the world’s eighth-largest economy by GDP, Italy maintains the third-largest gold reserves globally. Remarkably, the Bank of Italy has not purchased gold since 2001—unlike many other central banks. At the same time, it never sold any of its gold reserves, unlike institutions such as the Bank of England—an approach that now appears farsighted.
“In a time when the world is being reshaped, market prices reach unprecedented multiples, and digital assets like stablecoins and cryptocurrencies gain traction, central banks are holding the hottest asset of the moment,” said Stefano Caselli of SDA Bocconi School of Management to Reuters. “They are right not to sell.”
While Italy’s reserves have remained stable, other central banks continued heavy gold purchases in 2024, exceeding 1,000 tonnes for the third consecutive year, with a strong acceleration in the fourth quarter. Although buying slowed somewhat in 2025, demand remained solid, with 307 tonnes purchased in the second quarter alone.
For 2024, Poland was the largest buyer of gold (90 tonnes), followed by Turkey (75), India (73), China (44), and Azerbaijan (25). Analysts, however, believe China may have purchased additional gold through unofficial channels.
In the second quarter of 2025, the largest reserve increases came from Poland, Kazakhstan, Turkey, China, and the Czech Republic. Singapore was the largest seller, reducing its reserves by nearly 11 tonnes.
Excluding Poland, the strongest demand for gold is coming from emerging economies—part of a broader strategy to diversify reserves and reduce reliance on the U.S. dollar. Although gold does not pay interest and incurs storage costs, it remains a cornerstone of financial stability, particularly in uncertain times.
For central banks, strong gold reserves signal solidity and monetary credibility. In times of crisis, gold can support the value of national currencies, much like reserves in major foreign currencies. A central bank with more gold is therefore perceived as better equipped to defend its currency when needed.
The surge in gold demand in 2024 was not driven by central banks alone. According to the World Gold Council, annual investment demand reached a record 1,180 tonnes (+25%), with ETFs returning to positive inflows after three years of heavy outflows. Retail investor interest in gold has also revived. In value terms, between April and June, gold purchases totaled $132 billion (1,249 tonnes), up 3% year-over-year.
Global Gold Reserve Ranking
The United States remains the world’s largest holder of gold reserves, followed by Germany and Italy. At October 2025 prices, Italy’s reserves are worth more than $336 billion—ranking just behind Elon Musk and Larry Ellison in terms of net wealth, and ahead of Mark Zuckerberg and Jeff Bezos, according to the Bloomberg Billionaire Index.
If it were legally possible to sell the gold, Italy could theoretically fund the equivalent of 21 “Strait of Messina Bridge” megaprojects at current cost estimates.
Some countries with much larger GDPs hold significantly less gold. Japan, for example, has more than double Italy’s GDP but only about one-third of Italy’s gold reserves.
It is also worth noting that not all gold reserves are stored domestically. About 55% of Italy’s gold is held abroad—in the U.S., Switzerland, and the U.K.—to reduce risk, lower transport costs, and simplify potential foreign sales.
Why Central Banks Still Hold Gold
In a digital financial world, gold may seem old-fashioned—but its value remains unique. As the Bank of Italy explains, gold boosts confidence in both the financial system and the euro, especially in times of geopolitical or economic stress.
Gold carries no counterparty risk because it is not issued by any government or central authority. It can be used as collateral, lent out to earn income, or sold to adjust reserve levels.
Demand Hits New Highs Since 2020
In the second quarter, as gold prices rose another 3.7%, global demand reached a new post-2020 high. Investor appetite for gold ETFs played a key role, with net inflows totaling 170 tonnes from April to June. Combined with the first quarter, ETFs saw their strongest first-half performance since 2020.
Physical gold investment also grew, with purchases of bars and coins rising 11% year-over-year to 307 tonnes—the highest first-half figure since 2013.
Central banks may have slowed purchases due to high prices, but demand remains strong overall.
