The post El Salvador Boosts Gold Reserves with $50 Million Purchase Amid Bitcoin Strategy appeared first on Coinpedia Fintech News El Salvador has quietly joinedThe post El Salvador Boosts Gold Reserves with $50 Million Purchase Amid Bitcoin Strategy appeared first on Coinpedia Fintech News El Salvador has quietly joined

El Salvador Boosts Gold Reserves with $50 Million Purchase Amid Bitcoin Strategy

4 min read
El Salvador gold purchase 2026

The post El Salvador Boosts Gold Reserves with $50 Million Purchase Amid Bitcoin Strategy appeared first on Coinpedia Fintech News

El Salvador has quietly joined the growing list of nations increasing their exposure to gold, announcing a $50 million purchase through its central bank. The acquisition comes at a time when gold prices remain near record highs, driven by persistent macroeconomic uncertainty, geopolitical risks, and weakening confidence in traditional financial systems. For El Salvador, the move marks a notable shift back toward a traditional reserve asset while continuing its parallel strategy of accumulating Bitcoin. In the meantime, Bitcoin falls to under $82,000, and $1.75 billion is liquidated from the crypto market in the past 24 hours.

Second Gold Buy Since 1990 Signals Strategic Shift

According to the Central Reserve Bank (BCR) of El Salvador, the country purchased 9,298 troy ounces of gold, valued at roughly $50 million. This is only the second gold purchase made by the central bank since 1990 and follows a similar acquisition in September 2025, when El Salvador bought 13,999 troy ounces, also worth about $50 million at the time.

With the latest addition, the country’s total gold reserves now stand at 67,403 troy ounces. The BCR described gold as a “universally strategic reserve asset,” emphasizing its role in supporting long-term financial stability, protecting against structural shifts in global markets, and strengthening confidence among investors and the public.

Gold and Bitcoin: A Dual Reserve Strategy

The gold purchase comes alongside El Salvador’s continued commitment to Bitcoin. According to data from the country’s Bitcoin office, El Salvador now holds 7,547 BTC, valued at approximately $635 million. This dual approach highlights a broader strategy of diversification, combining a centuries-old store of value with a modern digital asset.

While Bitcoin underscores El Salvador’s image as a crypto-forward nation, gold provides a stabilizing counterbalance, particularly during periods of market stress when volatility in digital assets remains elevated.

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Global Gold Demand Accelerates

El Salvador’s move reflects a wider global trend. Gold demand has surged in 2026, with prices up nearly 20% year to date before a recent pullback. Central banks and institutions worldwide are increasingly turning to gold as a hedge against inflation, currency risk, and geopolitical instability.

Poland’s central bank has outlined plans to expand its gold reserves to 700 tonnes, while China has continued to add gold aggressively, far more than official figures suggest, according to estimates cited by Goldman Sachs and The Kobeissi Letter.

Tokenized Gold and Corporate Accumulation

Beyond central banks, corporations are also increasing their exposure. Tether reportedly added around 27 tonnes of gold in late 2025 and is targeting a 10–15% allocation, while demand for tokenized gold products like XAUT and PAXG has surged, driven by large-scale on-chain purchases.

Although gold dipped to around $5,176 amid heightened U.S.–Iran tensions, El Salvador’s purchase underscores a broader defensive posture. By strengthening its gold reserves while holding substantial Bitcoin, the country is positioning itself for resilience in an increasingly fragile global financial landscape.

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FAQs

Why did El Salvador buy $50 million in gold?

El Salvador purchased gold to diversify reserves, boost financial stability, and hedge against market volatility and global economic uncertainty.

How much gold does El Salvador now own?

After the latest purchase, El Salvador’s gold reserves total 67,403 troy ounces, reinforcing its long-term financial security strategy.

Is buying gold a common strategy for central banks?

Yes, central banks worldwide use gold to hedge against inflation, currency risk, and geopolitical instability, boosting investor confidence.

How does gold complement Bitcoin in El Salvador’s reserves?

Gold stabilizes the reserves during market stress, while Bitcoin offers growth potential, creating a balanced, diversified national portfolio.

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