Pasofino Gold Limited (TSXV: VEIN)
Re-defining the Dugbe Gold Project
Global central banks are poised to significantly increase gold reserves while reducing US dollar holdings, according to the World Gold Council’s (WGC) annual survey released Tuesday. The 2025 Central Bank Gold Reserves (CBGR) report reveals unprecedented momentum in gold accumulation, with geopolitical turbulence fueling the strategic shift.
Central banks have purchased over 1,000 tonnes of gold annually for the past three years – more than double the 400-500 tonne average of the preceding decade. This surge has propelled gold prices from approximately $1,800/oz to $3,400/oz, a near 90% increase. Year-to-date in 2025, prices have risen 26%, hitting an all-time high of $3,500/oz in mid-April.
The acceleration, triggered by Russia’s 2022 invasion of Ukraine, reflects mounting concerns over economic instability. The survey, capturing responses from a record 73 central banks (44% actively managing gold reserves), identifies geopolitical and economic uncertainty as the third-most critical factor driving gold purchases after interest rates and inflation.
“Gold’s performance during times of crisis, portfolio diversification and inflation hedging are some key themes driving plans to accumulate more gold over the coming year,” the WGC stated.
A concurrent retreat from the US dollar is underway: 73% anticipate “moderate or significant” declines in USD’s reserve share; Gold recently surpassed the euro as the world’s second-largest reserve asset per ECB data
Shaokai Fan, WGC’s Global Head of Central Banks, noted that this isn’t merely cyclical demand but a structural repositioning. Emerging market banks lead this shift, though confidence in gold’s strategic role spans all economies.
