According to the Financial Network APP, earlier this year, Ales Michl, Governor of the Czech National Bank, personally went to London to verify the large gold bars held by the Czech National Bank in the Bank of England's gold vault. This move demonstrates his ambition to increase the country's gold reserves to 100 tons over the next three years. Central banks in Eastern European countries are accelerating the purchase of gold to diversify investments and address external shocks. The Czech Republic, along with Poland, Serbia, and other countries, has become one of the largest buyers of gold, driving up the price of gold.

Michl's trip was not only to check the gold reserves, but also part of his implementation of a diversified investment strategy. It is understood that Michl's diversified investment strategy includes investments in the US stock market. Despite facing some scrutiny for purchasing gold at historical highs in the gold market, monetary officials have defended this, emphasizing that long-term investments are gradual and aimed at mitigating the impact of price fluctuations.

Since taking office in 2022, he has increased the Czech Republic's gold reserves fivefold. Faced with global economic uncertainty, Michl believes that gold is an asset uncorrelated with the stock market, capable of reducing volatility and providing economic security.

This Czech decision-maker is not alone. From Poland to Serbia, decision-makers in Eastern European countries have also joined this gold rush. They are diversifying investment risks by purchasing gold and expecting future gold price increases. This trend has made Eastern Europe one of the major buyers in the global gold market, further driving the rise in gold prices.

Similarly, Adam Glapinski, President of the National Bank of Poland, is keen on increasing gold reserves. He has increased Poland's gold reserves to about 420 tons and plans to raise the proportion of gold in all reserves to 20%. Glapinski even displayed these "property of all Poles" in a vault filled with gold bars, highlighting his emphasis on gold reserves.

Figure 1

In addition to Poland and the Czech Republic, countries like Serbia are also actively increasing their gold reserves. Serbian President Aleksandar Vucic will bring back the gold stored abroad to the country and has pledged to use every surplus fund remaining in the national treasury to purchase gold to ensure the country's safety in times of difficulty. Since taking office, Serbian Central Bank Governor Jorgovanka Tabakovic has doubled the gold reserves to reach 48 tons.

The reason why Eastern European countries are so enthusiastic about buying gold is to diversify investments and reduce economic volatility on one hand, and to address external shocks such as the potential trade war initiated by Trump and geopolitical tensions in Ukraine and the Middle East on the other. Goldman Sachs predicts that the price of gold may continue to rise during Trump's presidency, reaching $3,000 per ounce by December next year.

Figure 2

Furthermore, gold plays an important role in the historical identity of Eastern European countries. For example, the Hungarian Central Bank has a Currency Museum displaying a historical sculpture of central bank staff fleeing the Soviet army at the end of World War II on a train loaded with gold reserves. This historical memory also encourages Eastern European countries to cherish gold even more.Its price has soared to a historic high, closely related to market expectations of interest rate cuts by the Federal Reserve.。

Serbian central bank governor Tabakovic emphasized that the accumulation of gold reserves has received close attention and guidance from President Vucic. President Vucic provided solid support for gold purchases with his strategic thinking, global geopolitical knowledge, and information.

Tabakovic pointed out in an email: "Against the backdrop of current global turmoil and frequent geopolitical conflicts, especially in the face of the challenge of high inflation, the value and importance of gold are increasingly prominent. Unfortunately, both of these factors have intensified in recent years."

In summary, central banks in many Eastern European countries are accelerating the purchase of gold to cope with global economic uncertainty and external shocks. This trend not only drives up the price of gold but also reflects the importance and dependence of Eastern European countries on gold as a safe-haven asset.