El Salvador's Central Reserve Bank has recently made significant progress in its gold acquisition strategy, purchasing 9,298 troy ounces of gold valued at $50 million. This marks the bank's second gold purchase since 1990 and sets a trend for further investments in precious metals.
This recent acquisition follows a similar investment in September 2025, which also involved $50 million in gold. Together, these purchases have increased El Salvador's total gold reserves to 67,403 troy ounces, with an estimated market value of around $360 million. The bank has emphasized that this investment strategy aims to strengthen the country’s long-term financial stability and to ensure a balanced composition within its international reserves portfolio.
Why is the demand for gold increasing? Over the past year, the price of gold has surged by nearly 50%, driven by various market conditions, including geopolitical tensions and fluctuations in the dollar's value. Data from TradingView indicates that the September purchase alone yielded approximately $13 million in profits for El Salvador, highlighting the financial benefits of investing in gold.
In addition to its gold purchases, El Salvador continues its daily accumulation of Bitcoin, now holding 7,546 BTC, valued at about $618 million. This dual strategy of investing in both gold and cryptocurrency places El Salvador in a unique position as central banks worldwide increase their gold reserves amidst rising economic uncertainties.
The World Gold Council reported that global central banks added a net total of 863 tonnes of gold last year, with Poland leading as the largest buyer. Notable increases in gold purchases were observed towards the end of 2025, as prices hit record highs. Though both gold and Bitcoin experienced some selling pressure recently, with prices adjusting to $5,100 for gold and $82,000 for Bitcoin, the overall market sentiment remains focused on securing these assets as protective measures against volatility.