Amid historic volatility across global markets, el salvador gold policy is evolving as the country leans further into hard assets to reinforce its reserves.
El Salvador boosts gold reserves with second major purchase
The Central Reserve Bank (BCR) of El Salvador has confirmed a new acquisition of $50 million in gold, its second such purchase since 1990. The move comes during gold’s record rally and reflects a broader shift among central banks toward hard assets as protection against macroeconomic uncertainty.
In its latest announcement, the BCR said it bought 9,298 troy ounces of gold, valued at $50 million. However, this was not the country’s first allocation in recent years. The purchase follows the acquisition of 13,999 troy ounces in September 2025, also worth roughly $50 million at that time.
According to the central bank, these moves have lifted El Salvador’s total gold holdings to 67,403 troy ounces. Moreover, the institution emphasized that this expansion strengthens the overall composition of its international reserves and supports resilience against global shocks.
The BCR described gold as a “universally strategic reserve asset” that underpins long-term financial stability. It argued that the metal helps shield the domestic economy from structural changes in international markets and bolsters confidence among both investors and citizens.
“The Central Reserve Bank of El Salvador states that this second acquisition strengthens the country’s long-term assets, while maintaining a prudent balance in the composition of the assets that make up the International Reserves,” the bank noted. That said, the statement did not outline any formal target level for future purchases.
Gold strategy complements growing Bitcoin reserves
The latest gold acquisition comes as the country continues to expand its exposure to Bitcoin, reinforcing its image as a global crypto trailblazer. Since adopting Bitcoin as legal tender, the government has steadily accumulated coins for the national treasury.
According to the most recent figures from El Salvador’s Bitcoin office, national reserves now include 7,547 BTC, valued at approximately $635 million. However, officials have framed the dual accumulation of Bitcoin and gold as part of a broader diversification of state assets rather than a pure bet on any single market.
In this context, the el salvador gold accumulation strategy appears designed to complement rather than replace the country’s crypto exposure. Moreover, by combining physical bullion with digital assets, policymakers aim to balance innovation with the traditional role of gold as a stabilizing reserve asset.
Global gold demand rising as investors seek safety
El Salvador’s latest move is unfolding against a backdrop of surging global demand for gold. The metal has rallied nearly 20% year to date, hitting multiple record highs as geopolitical and macroeconomic tensions intensify. Investors worldwide have rotated into safe-haven holdings in response.
This trend is visible across both sovereign and corporate buyers. The National Bank of Poland recently disclosed plans to expand its gold reserves to 700 tonnes, signaling a strategic push to reduce reliance on traditional reserve currencies. Moreover, this shift aligns with a broader pattern among emerging markets seeking protection from currency and interest rate volatility.
China has also accelerated its bullion accumulation. The country added more than 10 tonnes of gold in November, although analysts suspect the actual figure is significantly higher than official disclosures. According to Goldman Sachs, the volume could be nearly 11 times larger than the central bank’s reported purchases.
“Assuming official purchases were 10% of what China is actually buying, this suggests China acquired +270 tonnes of physical gold in 2025. China is stockpiling gold like we are in a major crisis,” market commentary platform The Kobeissi Letter wrote. However, Chinese authorities have not publicly confirmed those estimates.
Institutional and tokenized gold demand accelerates
Beyond governments, private institutions are also ramping up exposure to bullion. As reported by BeInCrypto, stablecoin issuer Tether added roughly 27 tonnes of gold in the fourth quarter of 2025. The firm has been purchasing around 1–2 tonnes per week and is targeting a 10–15% portfolio allocation to the metal.
Moreover, demand for tokenized gold has risen in parallel with physical buying. On-chain data shows increased large-scale whale accumulation of Tether Gold (XAUT) and Paxos Gold (PAXG), underscoring the growing use of blockchain rails for exposure to traditional safe-haven assets.
These flows highlight how investors are combining conventional bullion markets with digital infrastructure. However, they also reinforce the perception that concerns about inflation, currency debasement, and geopolitical risk are driving a structural revaluation of gold’s role in global portfolios.
Market snapshot and outlook
Despite the long-term bullish narrative, gold has not moved in a straight line. At press time, the metal was trading at $5,176, down 4% over the past 24 hours. The pullback coincided with escalating US–Iran tensions, which pressured risk assets and added volatility across commodities, equities, and cryptocurrencies.
For El Salvador, the combination of expanding gold reserves and rising Bitcoin holdings positions the country at the intersection of traditional and digital safe-haven strategies. Moreover, as global gold demand continues to climb and central banks reassess their international reserves composition, El Salvador’s approach will remain a closely watched case study in reserve management.
In summary, the nation’s latest $50 million bullion purchase, alongside its 7,547 BTC stash, illustrates a deliberate effort to hedge against an increasingly uncertain global environment while reinforcing confidence in its long-term financial stability.
Source: https://en.cryptonomist.ch/2026/01/30/el-salvador-gold-reserves/
