Gold boom in Uzbekistan

The market for investment gold in Uzbekistan is experiencing a real boom. In 2025, commercial banks sold a total of 661 kilograms of gold bars - more than eight times the previous annual average. Even compared to the cumulative sales from 2020 to 2024, the result is significantly higher, according to data from the Central Bank of Uzbekistan. A total of 33,939 gold bars were sold - more than in the previous four years combined. Since the introduction of the programme in November 2020, sales have totalled around 65,000 bars with a total weight of around 1.2 tons. At the same time, the buyback market remains active: banks have so far taken back around 11,800 bars weighing a good 200 kilograms. The dominance of small denominations is striking. In particular, 5 and 10 gram bars are driving business. They account for the majority of trading on both the sales and buyback side. Larger units such as 50-gram or 100-gram bars have only played a subordinate role to date - an indication that gold is increasingly being used as a low-threshold form of savings for broad sections of the population. The momentum has recently accelerated significantly. In 2024, sales were still at 236 kilograms, already a multiple of the previous average. The jump to 661 kilograms in the following year now marks a new dimension in demand. A key driver is the development on the global markets. The price of gold has risen sharply in recent years, and with it the appeal of the precious metal as a hedge against uncertainty. According to the World Gold Council, demand for gold bars and coins has risen significantly worldwide. Investors in Uzbekistan are also increasingly turning to physical gold - not least against the backdrop of geopolitical tensions and macroeconomic risks. There is also a clear yield advantage over traditional savings products. While bank deposits in local currency or US dollars yield comparatively stable but moderate interest rates, gold investments have recorded strong performance in recent years. After losses at the beginning of the decade, yields rose significantly from 2022 and recently reached double-digit growth rates. However, the central bank warns against exaggerated expectations. Gold remains a non-interest-bearing asset whose value depends solely on price developments on the international markets. Fluctuations can be correspondingly strong. The state gold program, which was launched in June 2020, has created the basis for the boom. It enables private individuals to buy and sell standardized gold bars directly via commercial banks. The range has been gradually expanded, most recently to include larger denominations such as 100-gram bars. Trust in the infrastructure is a key success factor. The bars are issued in tamper-proof packaging, equipped with QR codes, serial numbers and special security features. Resale is also clearly regulated: If the packaging is undamaged, payment is usually made on the same day. At the same time, the distribution network has also expanded. More and more banks are offering gold transactions and the number of sales outlets has multiplied across the country. New regulatory framework conditions also allow digital solutions: Customers can use mobile applications to buy and sell gold or hold it in so-called metal accounts. These electronic accounts enable investments from as little as 0.1 grams, further lowering the barriers to entry. At the same time, the risk of physical storage is eliminated. Banks can flexibly adapt their prices to the international markets, while customers can process transactions completely digitally. In 2025 alone, almost 170 kilograms of gold worth around 25.7 million US dollars were held in these accounts - a further sign of the increasing importance of the precious metal in the country's financial system. Gold also remains a strategic factor at state level. In February, Uzbekistan bought eight tons of gold, making it one of the world's largest buyers. The boom on the domestic market is thus part of a broader development: Gold is gaining weight in the country both as an investment instrument for private individuals and as part of the national financial strategy. The post Gold boom in Uzbekistan appeared first on ostwirtschaft.de.