In a landmark reversal of decades, central banks around the world now hold more gold than U.S. Treasury securities. This marks the first time since 1996 that gold has overtaken Treasuries in total holdings among official reserve assets.
This change reflects a growing appetite for gold as a safe-haven reserve, especially amid concerns about inflation, geopolitical instability, and reducing confidence in U.S. debt. In recent years, many central banks have aggressively increased their gold purchases—often exceeding 1,000 metric tons annually—driving their aggregate gold reserves to an estimated 36,000 tonnes.
As the value and weight of gold holdings rise, U.S. Treasuries’ share of central bank reserve portfolios has declined. Treasuries now account for a smaller portion of total reserves compared to gold, signaling a structural realignment in how countries allocate their reserve assets.
Analysts view this as more than a temporary trend: it could be the beginning of a long-term rebalancing. Factors such as sovereign debt pressures, currency risks, and global economic uncertainty are pushing reserve managers toward assets that provide insurance against systemic shocks.
While gold does not yield interest and carries storage costs, its perceived immunity to counterparty risks, sanctions, and currency devaluation makes it increasingly attractive. In contrast, Treasuries—once the backbone of reserve portfolios—are being reevaluated under the lens of debt sustainability and shifting global power dynamics.
As this reserve transition deepens, the relative strength of gold could influence monetary policy, currency markets, and international finance for years to come.
