For the first time since the 1990s, central banks, that’s the 'big banks of countries,' now hold more gold than US government bonds (called Treasuries).
Think of it like this: every country keeps a treasure chest for safety. In it, they store different things, mostly US dollars, some euros, some government bonds, and a bit of gold. Recently, they’ve been filling that chest with more gold than US bonds.
The European Central Bank’s International Role of the Euro 2025 report says central banks together hold around 36,000 tonnes of gold. At today’s prices, that stash is worth over 3.6 trillion dollars, more than what they hold in US Treasuries (about 3.8 trillion dollars, according to the US Treasury’s June 2024 survey).
Because gold has surged above 3,500 dollars an ounce in 2025 (Reuters data), its market value has jumped past Treasuries in official reserves.
Why are they turning to gold?
According to the World Gold Council (WGC) and the European Central Bank:
Gold can’t be frozen. After Russia’s dollar and euro reserves were locked up in 2022, countries want something 'sanctions-proof.'
Debt concerns. The US keeps borrowing more. Central banks don’t want all their safety nets tied to America’s debt.
Diversification. Like not putting all your money in one piggy bank, central banks want a mix of dollars, euros, and gold.
How much gold are they buying?
The WGC’s Gold Demand Trends reports show:
1,082 tonnes in 2022
1,037 tonnes in 2023
1,045 tonnes in 2024
That’s more than double the usual annual purchases a decade ago.
In 2025, the pace slowed but stayed high:
244 tonnes in Q1,
166 tonnes in Q2.
Metals Focus, a London consultancy quoted by Reuters, still expects about 1,000 tonnes to be added by the end of 2025.
What do surveys say?
The WGC’s Central Bank Gold Reserves Survey 2025 found that:
43 percent of central bankers plan to add more gold in the next year.
95 percent believe global gold holdings will keep rising.
What about India?
The Reserve Bank of India has been adding steadily. By March 2025, RBI’s holdings were around 880 tonnes. That means gold now makes up about 12 percent of India’s reserves.
For India, this helps build confidence in the rupee during currency swings, but it also means domestic gold demand collides with high global prices.
Does this kill the dollar?
No. The US dollar is still the backbone. The Federal Reserve’s 2025 review shows the dollar made up 58 percent of global FX reserves in 2024 (IMF COFER data). The ECB’s numbers (46 percent) only apply when you include gold in the calculation.
So gold is rising, but the dollar is still dominant.
Why this matters to you?
Gold demand = higher prices. Central banks buying pushes up gold prices, which can affect jewellery costs in India.
Currency stability. Having gold makes India safer during global shocks.
Signals a shift. Countries are quietly adjusting how they see the world’s financial system, they’re preparing for a future where the dollar might not be as dominant.
Central banks around the world are stacking gold like never before. They’re doing it because gold is safe, can’t be blocked, and holds value when the world feels uncertain. The US dollar is still the most powerful currency, but gold has now climbed to second place in the global reserve hierarchy.
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