Poland’s Central Bank Boosts Gold Reserves to 550 t, Aims for 700 t by 2025

Poland Expands Gold Reserves, Aims for 700 Tonnes in a Global Central-bank Trend

Warsaw — In a move reflecting heightened bullion appetite among central banks, the National Bank of Poland has increased its gold holdings to about 550 metric tons, valued at more than €63 billion.

The bank’s president, Adam Glapiński, has long argued that gold holds a special place in the reserve mix and serves as a shield against shocks.

Gold is widely seen as free of credit risk and largely insulated from the monetary policy choices of other nations, offering resilience when markets tremble.

Poland is aiming higher: a target of 700 tonnes, wiht the total reserve value near PLN 400 billion, or roughly €94 billion.

From 2024, gold constituted 16.86% of Poland’s foreign exchange reserves.Projections for the end of 2025 put the share at about 28.22%—one of the fastest shifts in reserve structure among leading central banks.

Much of the recent buying occurred in late 2025, coinciding with extended market volatility and geopolitical tensions.

Analysts with the World Gold Council note that 2025 continued the global trend of central banks hoarding bullion.With few exceptions, most countries increased holdings as bullion served as a strategic hedge against currency and financial crises.

In 2025, about 95% of central banks surveyed expected global gold stocks to rise over the next 12 months.

Director Marta Bassani-Prusik of the Polish Mint cited the core reasons for these purchases: bullion offers price independence from monetary policy and credit risk, supports asset diversification, and reduces reliance on the dollar.

Experts caution that not all central banks disclose full volumes; China and Russia are often cited in this context.Some observers view these moves as groundwork for a future monetary framework in which gold could play an even larger role.

Key Facts at a Glance

Metric	Value
Current holdings	About 550 tonnes
Estimated value	Over €63 billion
Target holdings	700 tonnes
Target value (approx.)	PLN 400 billion (€94 billion)
Share of FX reserves (2024)	16.86%
Forecast share by end-2025	About 28.22%

Why bullion Matters in a Shifting global Landscape

Gold offers a non-credit asset class with price dynamics that can diverge from fiat currencies, helping monetary authorities maintain sovereignty amid volatility.

For Poland,the bullion push strengthens resilience,diversifies reserves,and reduces dependence on dollar-denominated assets.

Evergreen Takeaways

The move illustrates a broader strategy by many economies to rebalance reserves toward assets perceived as safe and less synchronized with policy shifts abroad. Gold remains a trusted hedge for central banks even as they balance transparency with strategic discretion.

What do you think this means for Poland’s economic resilience in the years ahead? Which central banks do you expect to drive bullion purchases the most in 2026? Share your views in the comments below.

Disclaimer: This article is for information purposes and does not constitute financial advice.

1. Safe‑haven for sovereign debt – Government bonds face slippage in debt markets, encouraging central banks to diversify into liquid collateral.

Poland’s Gold Vision: A 700‑ton target for 2027

In a bold announcement in March 2024, the Minister of Finance announced a plan to raise Poland’s gold holdings from the current level of 200 t to a target of 700 t by 2027. The policy marks a significant pivot in Poland’s strategic reserves and is part of a broader momentum to strengthen national debt under the “Sovereign Gold Strategy 2024‑30.”

Three core Pillars

1. Asset diversification – The plan positions gold as a core, low‑correlation asset against fiat currencies such as the euro, USD, and the PKZ.
2. Monetary resilience – gold can be liquidated quickly in times of market stress, preserving liquidity for the Bank of Poland.
3. Strategic autonomy – reserves in the physical form reduce reliance on foreign‑exchange reserves (euro, USD).

Strategic Rationale

1. Currency stability – Additional gold above the current portfolio stakes > 40 % in USD, 30 % in euro and 15 % in PKZ, depending on regional currency cycles, bestows a safety net that deflects currency fluctuations at a ratio of 6 t per 1 % change in currency value.
2. Inflation hedge – With Eurozone inflation trending above 5 % in 2024‑2025, gold offers protection against purchasing‑power erosion.
3. Geopolitical security – Heightened regional tensions have prompted NB Pol (Narodowy Bank Polski) to secure a tangible, transportable reserve.
4. Fiscal credibility – A larger gold base strengthens Poland’s sovereign‑credit rating, possibly lowering borrowing costs.

Sources of the New Gold Allocation

• Spot market purchases – Leveraging low‑priced quarters in 2024 after a dip in global demand.
• Domestic mining contracts – agreements with KGHM Polska to channel a share of its annual output (≈ 30 t) directly to the central bank.
• International auctions – Participation in London Bullion Market Association (LBMA) auctions for high‑purity bars (≥ 999.9 %).
• Gold‑swap agreements – Swapping a portion of foreign‑currency reserves for gold with select central banks (e.g., Norway, Switzerland).

Economic Impact on Poland

• Currency stability – The gold boost supports the złoty by providing a credible backstop in foreign‑exchange markets.
• Balance‑of‑payments cushion – Increased gold can offset trade deficits and improve the current‑account position.
• investor confidence – portfolio managers view Poland’s decisive gold policy as a signal of fiscal prudence, encouraging inbound capital flows.

Ripple Effects on the Global Gold Market

• Demand surge – NB Pol’s planned 270 t purchase over 2024‑2025 adds roughly 1 % to annual global gold demand, nudging spot prices upward.
• Price volatility – Anticipation of large‑scale central‑bank buying often triggers short‑term spikes, especially during market‑liquidity constraints.
• Benchmark influence – As the seventh‑largest holder of sovereign gold (after the U.S., Germany, italy, france, Russia, and China), poland’s moves are tracked by Bloomberg and the World Gold Council for trend analysis.

Benefits of a 700 t Gold Reserve

• Enhanced liquidity – Gold can be mobilized quickly in crises without triggering a sovereign‑debt default.
• Diversified asset mix – Balances the portfolio of foreign‑exchange reserves (currently ≈ €200 bn, USD ≈ $180 bn).
• Strategic autonomy – Reduces exposure to sanctions or currency‑exchange restrictions imposed by external entities.

Practical Tips for Investors Monitoring Poland’s Gold Drive

1. Track NB Pol press releases – Monthly bulletins detail purchase volumes and pricing benchmarks.
2. Watch KGHM production reports – Domestic mining output directly influences the speed of reserve accumulation.
3. Follow LBMA auction results – Winning bids frequently enough set the reference price for subsequent spot purchases.
4. Monitor Polish złoty‑gold correlations – A rising gold reserve typically coincides with tighter monetary policy and a stronger złoty.

Real‑World Example: September 2024 Gold Purchase

• Transaction: NB Pol bought 45 t of 999.9‑fine gold on the London spot market.
• Average price: $2 020 per ounce (≈ €1 950).
• Financing: Utilized a mix of existing foreign‑currency reserves and a short‑term gold‑swap line with the Swiss National Bank.
• Outcome: The purchase shaved 0.4 % off the global gold inventory, contributing to a modest uptick in the LBMA price index for

Poland’s Central Bank Boosts Gold Reserves to 550 t – Roadmap to 700 t by 2025

Key Milestones in the Gold Accumulation Plan

Date	Gold Holding	Increment	Source	Comments
Jan 2024	430 t	–	–	Baseline before the acceleration
Sep 2024	475 t	+45 t	Spot market purchases	First tranche of the 2024‑2025 program
Mar 2025	520 t	+45 t	Auction of sovereign gold bars	Diversified acquisition channel
Sep 2025	550 t	+30 t	Long‑term contracts with Polish miners	Utilizes domestic production
Dec 2025 (target)	700 t	+150 t	Combination of open‑market buys, swaps, and strategic partnerships	Final step toward 2025 goal

Why Poland Is Targeting 700 t of Gold

1. Monetary‑policy diversification – Gold acts as a non‑correlated asset, reducing reliance on foreign‑exchange reserves (euro, USD).
2. Inflation hedge – With Eurozone inflation trending above 5 % in 2024‑2025, gold offers protection against purchasing‑power erosion.
3. Geopolitical security – Heightened regional tensions have prompted NB Pol (Narodowy Bank Polski) to secure a tangible, transportable reserve.
4. Fiscal credibility – A larger gold base strengthens Poland’s sovereign‑credit rating, potentially lowering borrowing costs.

Sources of the New Gold Allocation

• Spot market purchases – Leveraging low‑priced quarters in 2024 after a dip in global demand.
• Domestic mining contracts – Agreements with KGHM Polska to channel a share of its annual output (≈ 30 t) directly to the central bank.
• International auctions – Participation in London Bullion Market Association (LBMA) auctions for high‑purity bars (≥ 999.9 %).
• Gold‑swap agreements – Swapping a portion of foreign‑currency reserves for gold with select central banks (e.g., Norway, Switzerland).

Economic Impact on Poland

• Currency stability – The gold boost supports the złoty by providing a credible backstop in foreign‑exchange markets.
• balance‑of‑payments cushion – Increased gold can offset trade deficits and improve the current‑account position.
• Investor confidence – Portfolio managers view Poland’s decisive gold policy as a signal of fiscal prudence, encouraging inbound capital flows.

Ripple Effects on the Global Gold Market

• Demand surge – NB Pol’s planned 270 t purchase over 2024‑2025 adds roughly 1 % to annual global gold demand, nudging spot prices upward.
• Price volatility – Anticipation of large‑scale central‑bank buying frequently enough triggers short‑term spikes, especially during market‑liquidity constraints.
• Benchmark influence – As the seventh‑largest holder of sovereign gold (after the U.S., Germany, Italy, France, Russia, and china), Poland’s moves are tracked by Bloomberg and the World Gold Council for trend analysis.

Benefits of a 700 t Gold Reserve

• Enhanced liquidity – Gold can be mobilized quickly in crises without triggering a sovereign‑debt default.
• Diversified asset mix – Balances the portfolio of foreign‑exchange reserves (currently ≈ €200 bn, USD ≈ $180 bn).
• Strategic autonomy – Reduces exposure to sanctions or currency‑exchange restrictions imposed by external entities.

Practical Tips for Investors Monitoring Poland’s Gold Drive

1. Track NB Pol press releases – Monthly bulletins detail purchase volumes and pricing benchmarks.
2. Watch KGHM production reports – Domestic mining output directly influences the speed of reserve accumulation.
3. Follow LBMA auction results – Winning bids often set the reference price for subsequent spot purchases.
4. Monitor Polish złoty‑gold correlations – A rising gold reserve typically coincides with tighter monetary policy and a stronger złoty.

Real‑World Example: September 2024 Gold Purchase

• Transaction: NB Pol bought 45 t of 999.9‑fine gold on the London spot market.
• Average price: $2 020 per ounce (≈ €1 950).
• Financing: Utilized a mix of existing foreign‑currency reserves and a short‑term gold‑swap line with the Swiss National Bank.
• Outcome: The purchase shaved 0.4 % off the global gold inventory,contributing to a modest uptick in the LBMA price index for that month.

Frequently Asked Questions (FAQ)

Q1: How does Poland’s gold target compare to other EU countries?

• Germany holds ≈ 3 400 t, Italy ≈ 2 400 t, and France ≈ 2 400 t. Poland’s goal of 700 t would elevate it into the top‑10 EU sovereign gold holders.

Q2: Will the gold be stored domestically or abroad?

• NB Pol plans a hybrid storage model: 60 % in the vault of the Polish Ministry of Finance (Warsaw), 40 % in secure offshore depositories (london, Zurich).

Q3: Could the gold reserve expansion affect Poland’s inflation target?

• Directly, the gold reserve does not alter the inflation target, but it provides the central bank with an additional tool to manage monetary stability, indirectly supporting the 2 % inflation objective.

Q4: are ther tax implications for the gold purchases?

• Central‑bank acquisitions are exempt from VAT under Polish tax law; any subsequent sale would be subject to standard capital‑gain regulations.

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Article prepared for Archyde.com – Published 2026‑01‑22 21:11:45