Surprise? The Philippines Sold the Most Gold in the World in 2024
In September last year, we reported that the Bangko Sentral ng Pilipinas sold the most gold worldwide for the first half of 2024. According to online brokerage aggregator Bestbrokers, the country sold nearly 25 tons between January to June, decreasing the country’s reserves by 15.69 percent to just 134.06 tons.
Now that the full year 2024 is over, Bestbrokers has tallied the data it gathered from the World Gold Council and identified the countries that have bought and sold the most gold in the world last year.
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Unsurprisingly, the Philippines is still the world’s largest net gold seller in 2024. While the BSP bought and sold gold last year, the amount it sold far exceeded its purchases and also far outpaced other countries in selling activities. According to the WGC, the Philippines sold 29.4 metric tons of gold in 2024, lowering gold reserves by about 18.48 percent.
For comparison, the Philippines sold more than double the amount of gold than the second-place country in the list, Kazakhstan, which unloaded just 10.18 tons, lowering its reserves by 3.46 percent.
Third place goes to Singapore, which is just slightly behind Kazakhstan, selling 10.08 tons or -4.38 percent of its reserves.
Others in the top 10 largest net gold sellers in the world are Thailand (9.64 tons, -3.95 percent), Germany (1.12 tons, -0.03 percent), Mongolia (0.58 tons, -7.22 percent), Suriname (0.25 tons, -17.04 percent), Belarus (0.14 tons, -0.26 percent), Cambodia (0.12 tons, 0.29 percent), and Malta (0.09 tons, -33.32 percent).
Why are countries selling their gold?
“Recent data indicates that multiple countries have chosen to sell some of their gold holdings, likely in response to economic pressures, financial restructuring, or to ensure liquidity in volatile markets,” Bestbrokers said in its report. “Another reason why some chose to sell gold was last year’s impressive gold rally, seeing the price of the precious metal climbing by 50 percent within a year.”
According to recent reports, gold prices continue to climb to record levels, with spot gold trading at around $2,940 (P168,000) per troy ounce as of February 19. This represents an increase of about 50 percent within just a year. Bestbrokers said the surge is primarily driven by escalating geopolitical tensions over the past two years and growing economic uncertainties, which has driven the cost of gold bars to $1 million for the first time in history.
What the BSP Has Said
In response to the earlier report about its gold-selling activities for the first six months of 2024, the BSP said the selling was part of its active management strategy of the gold reserves, which is part of the Gross International Reserves, of the country.
“The BSP took advantage of the higher prices of gold in the market and generated additional income without compromising the primary objectives for holding gold, which are insurance and safety,” it added.
According to the BSP, the country’s GIR level “provides adequate external liquidity buffer and is equivalent to 7.8 months’ worth of imports of goods and payments of services and primary income.”
In a phone interview with Esquire Philippines also last September, RCBC chief economist Michael Ricafort also said the BSP’s decision to sell a portion of the country’s gold reserves, was a “prudent investment decision.”
“The BSP is known as an independent and professional institution with integrity,” he said. “It has had a good track record for many years. It’s also autonomous. Walang ibang branch ng government na pwedeng magdikta sa moves nila. This was purely a business decision.”
Ricafort explained that it seemed only logical for the country to cash in, with the price of gold at record highs, and that the BSP leadership has been talking about this policy of selling gold in the world market for years.
“Compared to how much (gold) was 30 years ago, which was around $600, the price now is, what over $2,000 (per ounce)?” he said. “So this was purely a selling program to monetize (our holdings). Hindi pa man bumubulusok yung price (of gold) meron nang (selling program). And now that gold is at record highs, saying yung kita. And hindi natin alam kung hanggang kailan ito at this price.”
Gold holdings make up about 10 percent of the country’s GIR, which also includes the country’s US dollar value of foreign investments, foreign exchange holdings, contributions to the International Monetary Fund. Ricafort said that, unlike other countries, the Philippines is also a top gold producer, and is believed to be third in the world in terms of known gold reserves (and fifth in nickel reserves).
“The BSP is simply managing its gains,” he said. “Kumita na tayo, now that sobrang taas ng value ng gold ngayon. Who knows, those who are waiting to sell, baka di na abutan yung value ng gold at this level; baka masunog na yung mga latecomer.”
Gold buyers
At the other end of the spectrum, Poland has risen to become the world’s top purchaser of gold in 2024, increasing its reserves by 89.54 tons or 24.96 percent. According to Bestbrokers, geopolitical tensions, particularly Russia’s invasion of Ukraine, and Poland’s closeness to the conflict, could explain why the country’s central bank has been building its gold reserves.
In second place in the list of the world’s top gold buyers is Turkey, which added 74.79 tons or 13.85 percent to its reserves, followed by India (72.62 tons, +13.85 percent), China (44.17 tons, +1.98 percent), and Czechia (20.51 tons, 66.87 percent).
Meanwhile, the United States continues to lead in the list of countries with the world’s largest gold reserves, with 8,133 tons as of December 2024. Second place is Germany (3,351 tons), followed by Italy (2,451 tons), France (2,437 tons), Russia (2,335.85 tons), China (2,279.56 tons), Switzerland (1039.94 tons), India (876.20 tons), Japan (845.97 tons), and Turkey (614.97 tons).
The Philippines, with its 129.65 tons of gold, is 30th-largest in gold reserves in the world.
“Analysts from prominent financial institutions, including Goldman Sachs and Citigroup, are forecasting that gold prices could surpass $3,000 (P171,500) per troy ounce by the end of 2025,” Bestbrokers said. “This projection is influenced by several factors, including expectations of lower interest rates maintained by central banks, ongoing geopolitical uncertainties that continue to unsettle the markets, and a trend of central banks around the world actively increasing their gold reserves as a hedge against economic instability.”
