El Salvador Doubles Down on Gold, Acquires $50 Million in Bullion Amid Global Rush
San Salvador – In a strategic move to bolster its financial reserves, El Salvador's Central Reserve Bank (BCR) has acquired an additional $50 million worth of gold, marking its second significant bullion purchase in under a year and signaling a deepening commitment to hard assets.
The bank purchased 9,298 troy ounces, bringing the nation's total gold holdings to 67,403 troy ounces. This follows a September 2025 purchase of 13,999 ounces for a similar value. In a statement, the BCR characterized gold as a "universally strategic reserve asset" crucial for long-term stability, insulating the economy from global market shifts, and bolstering public and investor confidence.
The acquisition arrives amidst a historic rally for the precious metal, which has soared nearly 20% year-to-date as macroeconomic uncertainty and geopolitical friction drive capital toward traditional safe havens. El Salvador's foray into gold presents a fascinating counterpoint to its status as a crypto pioneer. The country continues to amass Bitcoin, with official holdings now at 7,547 BTC (valued near $635 million), per its Bitcoin Office.
Analysts view the dual strategy as an attempt to diversify sovereign assets. "This isn't an either-or proposition for El Salvador," said financial strategist Dr. Elena Marquez. "They're building a hybrid reserve portfolio. Bitcoin offers potential high-growth exposure, while gold provides a centuries-old anchor of stability, especially during the current global instability."
El Salvador is far from alone. A global gold-buying spree is underway among central banks and institutional players. The National Bank of Poland aims to expand reserves to 700 tonnes, while China's reported purchases are believed to be multiples of its official figures. Even in the digital sphere, entities like Tether are aggressively accumulating physical gold, targeting a significant portfolio allocation.
The move has sparked debate among observers. Carlos Rivas, a San Salvador-based economist, offered cautious support: "Prudent diversification is wise. However, the timing is critical. Buying at record highs carries risk, and the government must be transparent about the cost-benefit analysis versus other reserve options."
A more critical perspective came from Anya Petrova, a emerging markets analyst at a European think tank: "This feels reactive and headline-driven. After betting the house on volatile Bitcoin, they're now chasing gold at its peak. It smacks of financial improvisation rather than a coherent long-term strategy. Are they protecting the economy or just managing perception?"
As of this reporting, gold traded at $5,176, experiencing a short-term dip amid broader market pressures from escalating U.S.-Iran tensions. The trend, however, remains decisively upward.
This report includes analysis and commentary based on an original story by Kamina Bashir at beincrypto.com.