A Global Turning Point: Gold Surpasses Treasuries in Central Bank Reserves
As nations hedge against debt and de-dollarization, physical gold proves to be the ultimate safe haven
For the first time in nearly three decades, central banks around the world now hold more gold than U.S. Treasuries in their reserves — a milestone that signals a historic turning point in global finance and a clear warning for investors who still rely solely on paper assets.
According to data compiled by Crescat Capital macro strategist Tavi Costa, the crossover marks a decisive move by global reserve managers away from dollar-denominated securities and toward tangible stores of value. The shift comes amid record-breaking central bank gold purchases, mounting fiscal strain in Washington, and widespread concern over the long-term stability of the U.S. dollar.
After decades of dollar dominance — from the petrodollar era of the 1980s through the liquidity-driven boom of the 2000s — nations are now diversifying faster than at any time since the end of Bretton Woods.
“Central banks continue to be consistent and strategic buyers of gold, even at record prices, because of the role it plays in strengthening their reserve portfolios,” said Joe Cavatoni, senior market strategist at the World Gold Council, in comments to MarketWatch. “For many, this is about diversification, stability, and long-term confidence in their holdings.”
A Record-Breaking Shift
The data tell a remarkable story. Central banks collectively purchased 1,136 tonnes of gold in 2022 — the largest amount on record — with 2023 and 2024 continuing at historically strong levels. Nearly one-fifth of all the gold ever mined is now held by central banks.
By contrast, holdings of U.S. Treasuries have declined steadily as yields remain volatile and U.S. debt surges past $38 trillion. The International Monetary Fund estimates gold’s share of global reserves has climbed to roughly 18% in 2024, up sharply from less than 10% a decade earlier.
This surge in demand has helped drive gold to unprecedented highs, up over 50% year to date. Even as prices continue to climb, buying remains strong — a sign that this is not a speculative wave, but a long-term recalibration of global trust.
“In an environment of persistent geopolitical uncertainty, shifting interest rate expectations, and questions around the reliability of fiat currencies such as the U.S. dollar, gold remains a trusted store of value that’s independent of any one government or financial system,” Cavatoni added. “We’re seeing a structural, not cyclical, change in how central banks view gold.”
Who’s Leading the Charge
Emerging markets are spearheading the trend. China, Russia, Türkiye, and Poland have been among the most aggressive buyers, with Poland adding gold for 24 consecutive months and reaffirming its commitment by raising its target share. In August 2025, the National Bank of Kazakhstan, Bulgaria, and El Salvador also joined the buyers’ list, according to the World Gold Council’s October 3 report.
Meanwhile, the United States remains the world’s largest single holder of gold, with 8,133 metric tons stored across Fort Knox, West Point, Denver, and the New York Federal Reserve, according to former U.S. Mint Director Edmund Moy. He explained that the country’s massive holdings date back to President Franklin D. Roosevelt’s 1933 order requiring Americans to turn in gold coins, followed by the gold inflows of World War II.
What It Means for Investors
The message behind these record central bank purchases is clear: hard assets are regaining dominance. As global debt rises, currencies weaken, and geopolitical tensions mount, gold is increasingly viewed as a hedge not just against inflation, but against systemic risk itself.
For everyday investors, the implications mirror those guiding central banks — protection through diversification. Gold doesn’t depend on government solvency, digital systems, or monetary promises. It simply holds value.
Reagan Gold Group — Your Partner in Protection
At Reagan Gold Group, we believe financial security starts with owning assets you can trust — not speculative bubbles or political promises. That’s why we help Americans safeguard retirement savings through physical gold and silver, whether via Precious Metals IRAs or direct ownership.
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