Template-Type: ReDIF-Article 1.0

Author-Name: David Marczis
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: marczisda@mnb.hu
Author-Person: 

Author-Name: Timea Karacsony
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: karacsonyti@mnb.hu
Author-Person:

Author-Name: Andras Straubinger
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: straubingera@mnb.hu 
Author-Person:

Title: Sustainability and Climate Risk Analysis of Gold as a Central Bank Reserve Asset

Abstract: Gold is a precious metal with several functions: it has been widely used in jewellery
for thousands of years, and, as it serves as a store of value and has other special
financial properties, it is also used as an investment asset. Gold also plays
a prominent role in central bank reserves, primarily as a safe-haven asset and
diversifier. Climate change may have negative social and economic consequences,
such as intensifying geopolitical tensions and rising inflation, which may increase
demand for safe-haven assets, including gold. Considering the role gold plays in
central bank reserves, it is important to understand its climate risk profile as well. In
this paper, we assess the physical and transition risks of gold investments. The main
message of our analysis is that gold as a final product is practically indestructible
and therefore its physical risk exposure is negligible, but its transition risk profile
cannot be clearly determined.

Classification-JEL: Q51, Q54, G32, E58
Keywords: sustainability, climate risks, gold, gold reserve, central bank investments
Pages: 73-97
Volume: 24
Issue: 2
Year: 2025
File-URL: https://hitelintezetiszemle.mnb.hu/sw/static/file/fer-24-2-ove1-marczis-karacsony-straubinger.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:24:y:2025:i:2:p:73-97