El Salvador joins the gold rush, acquires 13,999 troy ounces - Coinfea

El Salvador has become one of the latest countries to join the gold rush, with the Central Reserve Bank announcing the acquisition of 13,999 Troy ounces of gold, worth about $50 million. With the new purchase, El Salvador’s gold stash moved from 44,106 troy ounces to 58,105 troy ounces, estimated at $207 million.

ContentsEl Salvador announces plans to diversify its reservesIs the country switching from BTC to gold?This is the first purchase made by the country in a while, with its last one coming in 1990. The country is also following the steps of major countries like China, Turkey, and India, which have been frequently buying the precious stone.

El Salvador announces plans to diversify its reserves

According to El Salvador, the acquisition of gold is part of its International Reserves diversification strategy. The country’s BCR believes in gold and sees it as a universally strategic asset. It highlighted that the precious metal will help El Salvador strengthen its long-term financial plan and protect the country’s economy from turbulent international markets.

The central bank believes that investing in gold brings greater stability for El Salvadorans. “The implementation of this strategy is possible thanks to the strengthening of the Central Reserve Bank’s assets in recent years … resulting from the various policies implemented by President Nayib Bukele,” wrote the Central Bank of El Salvador (BCR) in the release.

The decision to purchase gold shows that El Salvador is trying a different approach towards strengthening its reserves. Since 2021, the company has been focusing its attention on Bitcoin. However, the country faced massive backlash after an IMF report showed that it had not been purchasing new Bitcoins since December 2024. The IMF demanded that the country stop buying the asset after granting a loan of $1.4 billion.

Is the country switching from BTC to gold?

President Nayib Bukele has yet to address the IMF’s claims, and the country’s Bitcoin Office recently moved its BTC into different wallets, citing security reasons. Analysts see El Salvador’s latest gold purchase as a positive sign. The BCR is trying to stabilize its balance sheet since Bitcoin is volatile. The country’s central bank reported net international reserves of $4.7 billion in July 2025. That’s an increase from the $3 billion recorded a year earlier. About $700 million is held in Bitcoin.

El Salvador is also following in the footsteps of other countries, with central banks from different countries already adding 1,000 tonnes of gold collectively each year in the past two years. According to the World Gold Council (WGC), they are on track to hit that figure in 2025. In its recent report, the WGC said central banks purchased 10 tonnes of gold in July.

The precious metal now accounts for nearly 20% of global reserves, ranking second after the US dollar. Goldman Sachs believes that if the American Federal Reserve Bank loses its independence, investors will convert some of their US treasuries into gold. This will push the gold buying spree even further, pushing the precious metal to $5,000 per ounce.