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Gold Outshines US Debt: Global Trust Shifts
4 Jun
Summary
- For the first time since 1996, central banks hold more gold than U.S. Treasuries.
- Gold prices surged 66% in 2025, inflating vault holdings value.
- Central banks bought substantial gold in 2025, exceeding long-term averages.
Global financial trust has shifted, with central banks now holding more gold than U.S. Treasuries for the first time since 1996. This represents a significant change from previous decades where American government debt was the primary reserve asset.
The shift was influenced by two key factors. Firstly, gold experienced a substantial price increase of approximately 66% in 2025, briefly exceeding $5,500 per ounce in January 2026. This inflation boosted the value of existing gold reserves.
Secondly, central banks significantly increased their gold acquisitions in 2025, adding around 863 tonnes. While this was less than the preceding three years, it remained substantially higher than historical norms. The National Bank of Poland was a notable buyer, increasing its holdings by 102 tonnes.
Collectively, these trends have led foreign central banks to hold an estimated $3.93 trillion in gold by the end of 2025, slightly surpassing their approximately $3.9 trillion holdings in U.S. Treasuries. This move reflects a broader sentiment of distrust in various fiat currencies.
