CNB Heads Towards 100 Tonnes of Gold. Why Are Central Banks Still Buying?

The Czech National Bank continues to increase its gold reserves significantly. At the end of July 2026, it held 84.1 tonnes of gold and aims to reach 100 tonnes by 2028. A similar trend can be seen globally. Central banks remain major buyers of gold, and according to the latest surveys, most of them expect global gold reserves to continue rising. Why is gold once again moving to the centre of attention?

From 12 tonnes to more than 84 tonnes in just a few years

At the end of 2022, the Czech National Bank held approximately 12 tonnes of gold. Since 2023, however, it has been increasing its gold reserves substantially.

By the end of July 2026, the CNB reported 84.1 tonnes of gold in its foreign exchange reserves. Its goal is to increase its holdings to 100 tonnes by the end of 2028.

If this target is reached, according to the CNB, it will represent the largest amount of gold held in the history of the Czech central bank.

A simple comparison shows the scale of the change:

End of 2019: approximately 8 tonnes

End of 2022: approximately 12 tonnes

End of July 2026: 84.1 tonnes

Target for 2028: 100 tonnes

Within only a few years, gold has once again become a much more significant part of the Czech Republic's foreign exchange reserves.

The CNB is not alone

The Czech Republic is far from being an exception.

According to the latest data from the World Gold Council, central banks and other official institutions purchased approximately 289 tonnes of gold on a net basis in the second quarter of 2026 alone.

Compared with the same period in 2025, this represents an increase of approximately 62%.

Central bank purchases naturally vary from month to month and quarter to quarter, but long term demand for gold remains very strong.

The latest World Gold Council survey of reserve managers shows that:

89% of respondents expect global central bank gold reserves to increase over the next 12 months.

And a record:

45% of surveyed central banks plan to increase their own gold reserves during the coming year.

This is an important point. Central banks do not buy gold with an investment horizon of a few weeks or months. They manage reserves with a long term perspective.

Why do central banks need gold?

There are several reasons.

Diversification of reserves

Central banks manage large portfolios consisting of different currencies, government bonds and other reserve assets.

As with any large portfolio, relying on only one currency or one type of asset is generally undesirable.

Gold provides another way to diversify reserves.

Gold is not someone else's liability

A gold bar is not a claim against a bank, company or another country.

It is a physical asset.

This characteristic is particularly important for central banks during periods of heightened geopolitical or financial uncertainty.

Long term store of value

Gold has thousands of years of history as a means of preserving value.

Monetary systems have changed, states have emerged and disappeared, and individual currencies have gone through inflation, reforms and devaluations. Gold, however, has remained an internationally traded asset.

The World Gold Council lists diversification, protection against geopolitical and financial uncertainty and gold's long term ability to preserve value among the main reasons why central banks continue to hold and buy the metal.

Central banks do not buy gold for a quick profit

This may be the most interesting part of the story.

A central bank approaches gold very differently from a short term trader.

It is not focused on whether gold will be two percent more expensive or cheaper next week. It is building reserves designed to function for decades and to serve their purpose under a wide range of economic and geopolitical conditions.

The Czech National Bank itself states that it purchases gold gradually and regularly as it builds its reserves.

This long term approach is also one of the characteristics that distinguishes ownership of physical gold from short term trading.

What can private investors learn from this?

A central bank obviously manages a very different portfolio from a household or private investor, so the two cannot be compared directly.

The principle of diversification, however, is similar.

The objective is not to put all assets into gold. Central banks do not do this either.

Gold can represent one part of a portfolio that behaves differently from cash, equities, bonds or property.

The key is a long term perspective.

The price of gold can rise or fall in the short term. The role of physical gold should therefore not be assessed solely on the basis of price movements over a few weeks.

Physical gold has one fundamental characteristic

There are many ways to gain exposure to the gold price, ranging from exchange traded products and various financial instruments to shares in gold mining companies.

Physical investment gold is different.

The investor owns the actual metal.

Investment bars and coins from recognised global producers are standardised products that are internationally tradable.

Central banks follow the same basic principle, albeit on an entirely different scale.

The CNB explains that central banks primarily use so called Good Delivery bars that comply with the standards of the London Bullion Market Association. A typical bar weighs around 400 troy ounces, approximately 12.4 kilograms.

A private investor, of course, does not need to purchase a twelve kilogram gold bar.

Investment bars are available from as little as one gram, while common investment sizes include 10 g, 20 g, 1 oz, 50 g and 100 g.

Gold is returning to reserves

Several decades ago, many central banks were reducing their gold holdings.

Today, the situation is different.

Geopolitical uncertainty, efforts to diversify reserves and changes in the global financial system have once again increased the importance of an asset that does not require an issuer or counterparty.

The Czech National Bank is a good example of this shift.

From approximately 12 tonnes of gold at the end of 2022, its reserves increased to 84.1 tonnes by July 2026, with a target of 100 tonnes.

And according to current data, this is not an isolated Czech trend. Central banks around the world remain major buyers of gold, and many expect this trend to continue.

For private investors, this does not mean that gold should be purchased at any price or that an entire portfolio should be concentrated in one asset.

It is, however, a useful reminder of why gold continues to have a place in the reserves of institutions, countries and long term private portfolios alike.

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CNB Heads Towards 100 Tonnes of Gold. Why Are Central Banks Buying?

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The Czech National Bank held 84.1 tonnes of gold at the end of July 2026 and is heading towards 100 tonnes. Why are central banks worldwide continuing to increase their gold reserves?

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