4.8.25 - Poland: ditching the dollar and buying gold

4.8.25 - Poland: ditching the dollar and buying gold

Gold last traded at $2,980 an ounce. Silver at $29.79 an ounce.

New Country Begins Ditching US Dollar, Accumulates Gold in Central Bank -Watcher.Guru

It's no longer the Asian countries that are aggressively accumulating gold in their central banks and ending reliance on the US dollar. A new European country joined the league to become the biggest buyer of gold last month diversifying its assets in the central bank and not giving foremost importance to the US dollar. If European countries start the trend of diversification in central banks, it could cause major financial havoc in the US.

The new European country to accumulate tonnes of gold in their reserves and sideline the US dollar is Poland. Poland's central bank brought 16 tonnes of gold last month making it the biggest buyer of the precious metal in March. It even raced ahead of China, India, Russia, and Brazil who were actively accumulating the glittery metal since 2022.

Several countries are keeping the US dollar aside in 2025 and refilling their coffers with gold. The US dollar comes with risk as the debt ceiling is high and a recession could impact their native economies. JP Morgan has already increased the chance of a recession in 2025 from 30% to 60% after the tariffs went live.

54% of Poland's central bank purchases have been gold since 2024 and reduced US dollar, according to the latest data. "That increases its YTD net purchases to 49 tonnes, equivalent to 54% of its total purchases in 2024 (90 tonnes)," said David Miller, Chief Investment Officer at Catalyst Fund.

The total Poland spent to accumulate 16 tonnes of gold was $894,181,760 in April 2025. If more countries begin relying less on the US dollar and more on gold, the greenback could face a deficit. Central banks hoarded USD the most for decades and the diversification is a cause of worry.