Synopsis: For the first time in three decades, central banks worldwide now hold more gold than US Treasuries, signaling a major shift in global reserve strategy. Rising gold prices, sanction risks, and America’s ballooning debt are fueling the move.
In a historic shift, central banks across the globe are holding more gold than US government bonds for the first time in 30 years, according to the European Central Bank’s International Role of the Euro 2025 report.
Collectively, central banks now own over 36,000 tonnes of gold, valued at more than $3.6 trillion, compared with $3.8 trillion in US Treasuries as per the US Treasury’s June 2024 data. The change is being driven by gold prices surging above $3,500 per ounce this year.
Why Gold Over US Bonds?
Experts cite three main reasons for this strategic pivot:
- Sanction-proof asset: After Russia’s reserves were frozen in 2022, countries began stockpiling gold, which cannot be seized or blocked.
- US debt concerns: Rising American debt has made Treasuries riskier for long-term stability.
- Diversification: Central banks are spreading risk by reducing reliance on dollar assets and boosting gold reserves.
The Numbers Behind the Trend
- Central banks bought 1,082 tonnes of gold in 2022, 1,037 tonnes in 2023, and 1,045 tonnes in 2024, according to the World Gold Council (WGC) — more than double the annual average a decade ago.
- In 2025, purchases slowed slightly but remained strong, with 410 tonnes bought in the first half alone.
- Metals Focus projects this year’s total to hover around 1,000 tonnes.
The WGC’s 2025 survey found 43% of central bankers plan to buy more gold, while an overwhelming 95% expect global holdings to continue rising.
India’s Gold Play
The Reserve Bank of India (RBI) has also ramped up purchases, holding about 880 tonnes by March 2025, or 12% of India’s reserves. This move helps strengthen rupee credibility during volatile currency phases. However, higher international gold prices have added pressure on India’s domestic demand, given the country’s cultural affinity for the yellow metal.
With inflationary pressures, geopolitical uncertainty, and concerns about US fiscal health, gold’s shine as the ultimate safe-haven asset has never been stronger.
Disclaimer: This article is based on publicly available financial and institutional reports. It is intended for informational purposes only and does not constitute investment or trading advice. Readers should consult professional advisors before making financial decisi
