Media: Gold Surpasses US Treasuries as the World's Number One Reserve Asset

According to Mining.com, gold has surpassed US Treasuries to become the world's largest reserve asset.

Data from the World Gold Council shows that global gold reserves have reached nearly $4 trillion, while investments in US Treasuries are approximately $3.9 trillion.

The last time central banks' gold reserves exceeded their holdings of US Treasury securities was in 1996. The growth in gold reserves is driven partly by rising gold prices and partly by large-scale gold purchases by central banks.

Since the beginning of 2024, the price of gold has risen by more than 115%; the upward trend continued in 2025, with a further increase of 64% in gold prices.

Over the past three years, central banks around the world have increased their gold reserves by more than 1,000 tons annually. According to the World Gold Council, this trend will continue for the fourth consecutive year in 2025.

In 2024, the increase in central banks' gold reserves reached the third-highest level in history, at 1,045 tons — 91 tons less than the historical peak in 2022 (1,136 tons) and 62 tons less than the previous year.

In 2022, global net gold purchases reached a record high since 1950, which is also the highest level since the US dollar was decoupled from gold in 1971.

Between 2010 and 2021, central banks on average increased their gold reserves by 473 tons per year.

Experts from the World Gold Council stated that central banks are likely to continue actively purchasing gold. They pointed out that despite the sharp rise in gold prices, such gold purchases have shown remarkable stability.

At the same time, investments in US Treasuries globally have declined, but not significantly.

Mining.com noted that the rapid growth in gold reserves is part of the broader trend of de-dollarization, as "foreign governments are gradually moving away from dollar-denominated assets toward gold."

Why Are Countries 'Moving Away' from the Dollar?

Growing concerns about the use of the dollar as a geopolitical tool have intensified among countries. In an article published on the website of the Atlantic Council, a think tank designated as an "unwelcome organization" in Russia, Kimberly Donovan and Maya Nikolaze emphasized that due to concerns about sanctions, central banks are working to prevent potential global financial crises and other threats, thus actively increasing their gold reserves.

Additionally, concerns about the US government's fiscal irresponsibility are intensifying. Last October, the size of US debt exceeded $38 trillion, and there are currently no signs that borrowing and spending will slow down.

The media wrote: "One day, people will no longer want to lend more money to a 'Mr. Sam' who spends like a drunkard."

JP Morgan recently emphasized that the growing polarization of US domestic politics may threaten the system that maintains the country's "global safe haven" status.

Mining.com said that gold has no counterparty risk and "has historically been seen as a much more reliable choice than fiat currency."

The process of de-dollarization is accelerating, and more and more countries are developing strategies to reduce their dependence on the dollar. For example, Zambia has allowed mineral resource royalties to be paid in the currencies of relevant countries.

This situation is becoming a serious threat to the United States — the US economy relies on global demand for the dollar, and the dollar's status as a reserve currency provides funding for its large government institutions.

The report pointed out that as long as the dollar remains the world's reserve currency, the US can afford massive fiscal deficits. This status ensures continuous global demand for the dollar and dollar assets, absorbing the Federal Reserve's money supply, and even under inflationary policies, it helps maintain the strength of the dollar.

Original: toutiao.com/article/7594424275046515250/

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