Portugal's gold reserves experience a significant increase of 34 percent managed by the Bank of Portugal.
Banco de Portugal's Gold Reservoirs Swell by Eight Billion Euros in 2024
Banco de Portugal's gold reserves witnessed a notable increase in 2024, reaching a value of 31 billion euros, up from 23 billion euros the previous year. The substantial surge in value can be attributed to a year-long appreciation in gold prices, as the precious metal is considered a safe haven asset in tumultuous times.
According to the Monetary Policy Implementation Report, gold played a significant role in boosting Banco de Portugal's balance sheet by 3% and reaching 191 billion euros total. The increase in gold reserves accounted for nearly one-third of the overall balance sheet growth.
At the close of 2024, Banco de Portugal's gold holdings amounted to 382.7 tons, as per the BdP Board of Directors Report. This figure positions Portugal as the sixth largest gold reserve holder among Western European countries, trailing behind Germany, Italy, France, Switzerland, and the Netherlands.
The gold reserves are stored at the BdP's high-security complex in Carregado and in London. Portugal's gold reserves' increased value might signal improved economic conditions, as the price per ounce of gold reached historic highs in 2024.
Central banks typically hold gold as part of their foreign exchange reserves, with Banco de Portugal contributing to this trend. The economic stability and budget surplus achieved by Portugal in 2023, along with a declining debt-to-GDP ratio, might have contributed to a positive economic environment that indirectly supported the value of Portugal's gold reserves. However, the precise allocation of the appreciation between price increases and actual increases in gold holdings remains unclear.
Enrichment Data Consideration: The gold holdings of Banco de Portugal totaled 382.66 tons, valued at nearly 35 billion euros in Q4 of 2024, according to existing reports. The slight increase in gold holdings or a substantial rise in the gold price could have contributed to the 34% increase in the value of Portugal's gold reserves. The stable economic environment might have indirectly supported the value of its gold reserves, maintaining investor confidence and economic stability.
The increase in Banco de Portugal's gold reserves, totalling 382.7 tons, may have attracted interest from the banking-and-insurance industry, as the value of gold reserves swelled by eight billion euros in 2024, providing potential opportunities for finance-based investing in Portugal. The growth in gold reserves, accounting for nearly one-third of the overall balance sheet growth, can be seen as a positive sign for the industry, indicative of financial stability and economic progress in Portugal.
