Central Banks Hold 80% of Reserves in Gold. Sovereign Wealth Funds Hold Under 1%.
Thu Sep 24 2026
Central banks never really stopped buying gold. Sovereign wealth funds, pension funds, and family offices are only starting to catch up, and by widely different amounts. Comparing what each institution actually holds provides a clearer picture of gold allocation across investor types.
Key Takeaways
* The United States, Germany, France, and Italy each keep more than 80% of reserves in gold, according to the World Gold Council. Switzerland, despite large gold holdings by tonnage, keeps only about 12%
* Sovereign wealth funds passed $15 trillion in combined assets for the first time in December 2025. Gold still represents only a small fraction of that total.
* 72% of family offices report zero gold exposure, even though J.P. Morgan advisors suggest a 3–5% allocation.
* Ohio’s state pension system is building toward a strategic gold allocation for the first time. Several Swiss occupational pension funds are also doing the same, with allocations of 2–5%.
* The commonly cited retail benchmark for gold is 5–15% of a diversified portfolio, according to the World Gold Council.
Gold allocations vary sharply by investor type. Central banks hold the most. Several major Western reserve managers keep more than 80% of reserves in gold. Pension funds, family offices, and university endowments hold far less.
Western reserve managers, including the US, Germany, France, and Italy, hold more than 80% of reserves in gold. Switzerland is an exception at about 12%, while most emerging-market central banks hold lower percentages.
Sovereign wealth funds hold well under 1% of assets in gold, despite managing more than $15 trillion combined. Pension funds establishing new targets are generally landing at 2–5%. Family offices average close to 1%, while 72% report no gold exposure. University endowments generally do not report gold as a separate allocation in major industry studies.
How Much Gold Do Central Banks Hold?
Central banks remain the largest institutional gold holders, although the allocation differs significantly by country. The United States, Germany, France, and Italy each keep more than 80% of their foreign exchange reserves in gold, according to the World Gold Council.
Switzerland is a notable exception. Despite holding more than 1,000 tonnes, gold represents only about 12% of its reserves.
Many emerging-market central banks have lower allocations. China is near 8% and Saudi Arabia near 10%, according to the World Gold Council. Russia and India hold considerably more.
OMFIF’s 2026 Global Public Investor survey found that 82% of central banks now hold physical gold, compared with 71% a year earlier. A net 30% said they planned to add further.
The World Gold Council estimates that if more emerging-market central banks moved toward a 20% gold share, additional demand could reach 10,000–15,000 tonnes. That is roughly three to four years of total global mine output at the 2025 record pace of 3,672 tonnes.
How Much Gold Do Sovereign Wealth Funds Hold?
Sovereign wealth funds passed $15 trillion in combined assets for the first time in December 2025. Despite their scale, most funds disclose little about their specific gold holdings. Gold appears to remain a small fraction of their overall assets.
Even a 1% shift across the ten largest sovereign wealth funds would represent roughly $100 billion in new demand.
How Much Gold Do Pension Funds Hold?
Pension funds have historically had an easier legal path to gold ownership than everyday retirement accounts. A growing number are now using it.
Ohio’s School Employees Retirement System is building toward a 2% gold target. Its chief investment officer has cited concerns about currency debasement linked to rising government debt.
In Switzerland, several occupational pension schemes have added gold to their strategic asset allocations. At least one fund is reporting a 5% target.
These figures remain modest compared with central-bank reserves, but they represent a shift from zero allocations.
How Much Gold Do Family Offices Hold?
Family offices are among the most underweight institutional categories measured in the article.
J.P. Morgan’s 2026 Global Family Office Report found that 72% of family offices report no gold exposure.
The report's advisors suggest that a portfolio could have an allocation of between 3% and 5% to gold.
The gap between suggested allocations and actual holdings remains substantial.
Why Don’t University Endowments Report a Gold Allocation?
University endowments have historically been major users of alternative investments, including private equity and venture capital.
However, gold rarely appears as its own line item in major university endowment benchmarks, including the NACUBO-TIAA Study of Endowments.
Institutions that allocate substantial amounts to alternative assets have generally remained limited in their direct gold allocations.
What Percentage of Gold Should a Portfolio Hold?
A commonly cited allocation range for gold in a diversified portfolio is 5–15% of total assets, according to the World Gold Council.
The World Gold Council links this range to gold's potential to reduce correlation with equities during market drawdowns.
Incrementum AG’s 2026 *In Gold We Trust* report discusses the gap between gold's share of global financial assets and its share of privately held wealth.
The report estimates global financial assets at roughly $312 trillion, compared with approximately $8.6 trillion in privately held gold.
Morgan Stanley has separately discussed a “60/20/20” portfolio structure that assigns a 20% weighting to gold.
How Do Investors Get Gold Exposure?
Institutional investors can gain gold exposure through physical gold, allocated storage, and other investment structures.
Allocated gold storage allows investors to hold specific gold outside the banking system, while self-directed retirement accounts can provide another structure for eligible investors.
Source: https://goldsilver.com