Serbia’s central bank becomes sole buyer of domestic Zijin gold as reserves surge

Serbia is tightening the link between domestic mining output and its monetary reserve strategy, with the National Bank of Serbia moving to internalize gold production rather than letting it flow into global commodity markets. The central bank has emerged as the sole buyer of gold produced by China’s Zijin operations in Bor, a structural shift that matters for investors because it changes both the mechanics of reserve accumulation and the concentration risks tied to a single producer.

National Bank purchases record volume from domestic production

Data from the National Bank of Serbia show it purchased 344 gold bars in 2025, totaling approximately 4.3 tonnes. The acquisition represents a record annual purchase from domestic sources, reinforcing a “closed loop” model in which gold extracted from Serbian mines is absorbed directly into national reserves.

Reserve growth accelerates to historic levels

This policy supports an ongoing acceleration in Serbia’s reserve build-out. The country’s total gold holdings have risen to more than 53 tonnes—an historic high and more than double the level recorded a decade earlier.

Zijin’s role at Bor underpins the model

The strategy is closely tied to Zijin’s position in Serbia’s Bor mining complex. Since acquiring a majority stake in Bor in 2018, Zijin has expanded production capacity for both copper and gold through its Serbian subsidiary, Serbia Zijin Bor Copper. That scaling has helped Serbia move from being a marginal holder of gold toward a more strategically relevant reserve profile.

Implications: sovereignty benefits, but concentration risk rises

By purchasing domestically produced gold, the central bank reduces exposure to international market dynamics, foreign exchange volatility, and potential external supply disruptions. It also keeps value generated by mining activity within Serbia’s monetary system—effectively converting mining output into a balance-sheet asset.

At the same time, concentrating purchases through a single buyer introduces dependency on one dominant producer and its output stability. With the central bank acting as the only buyer, pricing dynamics are less influenced by market competition, increasing reliance on continuity at Bor.

A hybrid approach to global reserve trends

The move aligns with a broader global pattern: central banks—especially in emerging markets—have been increasing gold holdings as protection against inflation, currency swings, and geopolitical uncertainty. Serbia’s approach differs in execution by leaning on domestic production rather than relying primarily on international purchases.

Overall, Serbia is pursuing a hybrid reserve-building framework that blends commodity strategy with industrial policy. In this setup, the Bor complex functions not only as an industrial asset but also as a strategic link between natural resources, foreign investment, and sovereign financial policy—supporting Serbia’s evolving effort to strengthen economic resilience amid heightened global volatility.