Happy Thursday, GoldBuzzers!

A very warm welcome to all the new readers joining us for the first time this week.

Buckle up newbies, because today we're diving into two big stories that are shaking the precious metals world. First, I'll take a quick look at Wednesday's wild Fed meeting where Powell essentially told December rate-cut dreamers to pump the brakes (spoiler: gold didn't much care).

Then, in today’s Real Talk, I’ll be pulling back the curtain on the greatest gold hoarding operation in modern history - and no, it's not your crazy uncle with the WW2 bunker. Central banks are vacuuming up gold like it's Black Friday at Fort Knox, and once you see who's buying (and who spectacularly blew it), you'll understand why this bull market has some serious legs.

OK, let’s dive in.

Gold Bounces Back as Powell Plays Scrooge on December Cut

What a ride we had on Wednesday! Gold clawed its way back above the $4,020 mark, before falling back down to earth later in the session, closing around $3,935.

The Fed delivered its expected 25 basis-point cut as promised, bringing rates down to 3.75-4%, but here's where it gets spicy: Powell basically told Wall Street not to count their December chickens before they hatch, warning that another cut is "not a foregone conclusion - far from it"

Markets didn't love that party-pooper vibe, immediately slashing December cut odds from 90% to just 67%. The 10-year Treasury yield popped above 4%, which usually makes gold sweat since it raises the opportunity cost of holding the shiny stuff. But gold mostly shrugged it off like a boss, thanks to massive ETF inflows topping $120 billion (including a monster $10.5 billion weekly surge.)

Meanwhile, Silver closed up on the day at $47.52 and and despite the correction, is still ahead 62% in 2025. With the Fed ending its balance sheet runoff in December and geopolitical tensions still simmering, gold and silver will find plenty of willing buyers if prices continue lower.

Let’s step back for a moment and consider the big picture. It’s very clear that the global race for gold isn't just happening in trading pits and mining operations - most importantly, it's playing out in the vaults of central banks all over the world.

With nations consistently adding over 1,000 tonnes of gold to their reserves every year since 2022, and prices reaching record highs this year, understanding who holds the most gold has never been more important for us, as investors.

The Golden Giants: Top 10 Reserve Rankings

As you might imagine, the United States remains the undisputed leader with 8,133 tonnes of gold - more than the next three countries combined. Most of this massive hoard sits in Fort Knox, with additional reserves in Denver and the New York Federal Reserve. This represents approximately 76% of America's foreign reserves, underscoring gold's importance to U.S. financial security.

President Trump promised in February to audit America's gold reserves, raising questions that have lingered for decades about what's really in Fort Knox.

Perhaps more intriguing for investors: the U.S. values its gold at just $42.22 per ounce on the books - a relic from 1973. With gold trading around $4,000, that's over $1 trillion in unrealized gains. Some analysts suggest a revaluation could revolutionize the Treasury's balance sheet overnight, potentially backing a new monetary system or helping tackle the national debt. Whether that's conspiracy or possibility, one thing's certain: the official numbers don't tell the whole story.

Germany holds second place with 3,352 tonnes, followed closely by Italy (2,452 tonnes) and France (2,437 tonnes). Russia rounds out the top five with 2,336 tonnes, though recent geopolitical events have complicated their reporting. There is speculation that China’s holdings could be “a little bit” higher than reported by the IMF.

Dozens of other countries hold a combined total of around 2,857 tonnes.

Being a Brit myself, I feel somewhat qualified to present the award for the most Gold-ignorant country in the World to my own home country.

The UK once held 2,500 tonnes in its Empire heyday (peaked at 2,543 tonnes in 1950), but has been a serial seller and now ranks only 17th or 18th in gold holdings globally, despite being the 5th/6th largest economy.

The most infamous part of this sorry tale was Labour Chancellor, Gordon Brown, whose handling of the country’s gold was so catastrophically bad that I’ll leave it to you to decide if it was just normal incompetence. I couldn’t possibly comment!

The “Brown Bottom" Gold Sale:

At Today's Price ($4,000/oz):

The Full Picture Gets Worse:

The Irony:

At $4,000 gold, his decision cost the UK nearly $50 billion (could have built 150+ new hospitals) making it arguably one of the worst financial decisions in modern government history.

Central Banks on a Shopping Spree

OK, back to today. The numbers tell a striking story: central bank gold purchases since 2022 are totaling around 4,420 tonnes - more than double the annual average from the two decades prior.

Poland led the charge in 2024, expanding its reserves by an impressive 100 tonnes, marking a remarkable 25% increase. Turkey added 74.79 tonnes for a 13.85% increase, while India secured 72.6 tonnes, rising 9.03%. China has officially reported increasing its gold reserves for 18 consecutive months through 2025, adding over 300 tonnes during this period.

*2025 figures are estimated from latest data

Central banks have switched from being net sellers in the 1990s to net buyers post-2008, with the pace accelerating dramatically after 2020. The reasons are clear:

De-dollarization: The dollar's share of global reserves has declined from over 70% in 2000 to approximately 58% in 2025, while gold's share has increased from around 8% to nearly 15%.

Geopolitical Insurance: The freezing of Russian central bank assets in 2022 sent shockwaves through emerging markets. The message was clear: gold can't be sanctioned.

Inflation Protection: With major economies maintaining expansionary policies, gold offers protection against currency debasement that bonds simply can't match.

Market Impact: What It Means for Your Portfolio

As of 2025, approximately 15% of global central bank reserves are allocated to gold, though this varies dramatically by country - some European nations exceed 60%, while many emerging economies remain below 5%. I believe this disparity is highly significant as it creates a powerful tailwind for future demand.

Central banks now account for almost a third of annual gold demand, with global production holding steady at around 3,200 metric tonnes annually. When the world's most sophisticated financial institutions are buying that much new gold production, it creates a strong "price floor" during corrections.

The gold market dynamics have fundamentally shifted. Since 2018, global central bank gold demand has climbed to its highest level in five decades. This is now much more than just speculation - it's structural change.

Looking Ahead: The Golden Future

According to the World Gold Council's 2025 survey, 95% of central banks believe official gold reserves will continue to increase, up from 81% last year, with 43% indicating their own reserves would rise. The trend shows no signs of slowing.

For investors, the message is clear: when central banks with access to the world's best economic intelligence are stockpiling gold at record rates, it might be time to consider your own allocation. As emerging markets continue closing the gap with developed nations' gold allocations, demand could remain robust for years.

The country with the most gold remains the United States, but the real story isn't who's on top - it's who's buying. And right now, everyone's buying.

Remember, GoldBuzzers: Central banks don't make billion-dollar bets on a whim. They've been systematically positioning for something. Make sure you're positioned too.

That’s a wrap for today, folks. I’ll see you on Sunday with the weekend update.

Before you go, please take a moment to rate today’s newsletter and let us know how we did.

Rick Adams
Founder, GoldBuzz
rick@goldbuzz.com