Home / Business and Economy / Gold Surges Past Treasuries: A $4 Trillion Reserve Shift
Gold Surges Past Treasuries: A $4 Trillion Reserve Shift
10 Apr
Summary
- Central banks now hold nearly $4 trillion in gold, surpassing U.S. Treasuries.
- Gold's share in global reserves grew to around 24% from 5%.
- Countries are diversifying reserves away from U.S. debt and toward gold.
Central banks globally now hold nearly $4 trillion in gold, a notable increase that surpasses their holdings in U.S. Treasuries, estimated at around $3.9 trillion. This crossover marks the first time since the 1990s that gold has overtaken U.S. debt in central bank reserves.
The composition of global reserves has seen a dramatic alteration. In 2015, U.S. Treasuries accounted for approximately 33% of reserves; this figure has now declined to roughly 21%. Concurrently, gold's proportion has climbed substantially from 5% to about 24%.
This strategic shift indicates a move by nations to reduce their reliance on U.S. debt and to bolster their reserves with gold, recognized as a safe-haven asset. While this diversification is significant, it does not represent a complete de-dollarization, as the U.S. dollar continues to be the leading currency in international trade.
