El Salvador Acquires Gold Worth Nearly $50 Million

El Salvador has purchased gold valued at approximately $50 million as part of its broader efforts to diversify its international reserves and enhance financial stability amid its significant reliance on Bitcoin.

The Central Bank of El Salvador confirmed, in a social media post, the acquisition of 13,999 ounces of gold, bringing its total gold reserves to 58,105 ounces, currently valued at around $207 million.

This gold purchase—the country’s first since 1990—comes during a week when gold reached historic highs, with prices nearing $3,600 per ounce. Since the beginning of the year, gold bullion has risen by more than 36% amid strong buying demand from central banks.

The President stated that El Salvador possesses unmined gold worth $3 trillion.

Diversification into Gold

El Salvador’s move signals a cautious reassessment of its reserve strategy. For years, under President Nayib Bukele, El Salvador has embraced Bitcoin, becoming the first country to adopt it as legal tender in 2021.

Analysts view the latest gold purchase as a means to reassure international partners and stabilize the country’s balance sheet amid Bitcoin’s significant volatility.

According to Central Bank data, El Salvador’s net international reserves reached $4.7 billion in July 2025, compared to approximately $3 billion in the same month of 2024. Bitcoin accounts for about $700 million of these reserves.

El Salvador’s return to gold bullion reflects a broader trend among central banks toward accumulating gold. Over the past two years, global central banks have amassed gold at a record pace, purchasing over 1,000 tons annually, and are on track to approach this level again in 2025, according to the World Gold Council.

Gold now represents approximately 20% of global central bank reserves, ranking second only to dollar-denominated assets, per World Gold Council data.

Earlier this week, Goldman Sachs presented a scenario suggesting that central banks and institutions will continue allocating funds to gold while moving away from dollar-denominated assets amid the current political environment in the United States. In this scenario, gold prices could continue to rise, potentially reaching $5,000 per ounce, according to Goldman analysts in a note.