Gold Surpasses U.S. Treasuries as Global Reserve Asset

Gold has overtaken U.S. Treasuries as the world’s second-largest reserve asset held by central banks, according to a European Central Bank (ECB) report.

Bullion accounted for 27% of global central bank reserve assets at the end of 2025, up from 20% a year earlier, the ECB said. In contrast, U.S. Treasuries fell to 22% from 25% over the same period, while euro-denominated reserves remained unchanged at 15%, the report stated.

The shift marks the first time since 1996 that gold has surpassed Treasury bonds as the largest reserve asset held by foreign central banks, according to a separate report from NaturalNews.com ^[1]. Holdings of gold are nearing $4 trillion, compared to $3.9 trillion in Treasuries, the report added.

Reasons for Shift Include Geopolitical Tensions and Dollar Diversification

ECB President Christine Lagarde said geopolitical tensions continue to drive central bank demand for gold, according to the report. Many countries are diversifying away from the U.S. dollar following the freeze of Russia’s dollar reserves in 2022, a move that one analyst described as “the greatest financial blunder in history” for having “weaponized the dollar” ^[2].

The Western sanctions, which included freezing approximately $300 billion of Russian central bank assets, were intended as a knockout blow but instead proved a “catastrophic strategic miscalculation,” according to an analysis by NaturalNews.com ^[3]. Despite the shift, dollar-denominated assets still represent 42% of global reserves, remaining the largest share, the ECB said.

However, the dollar’s dominance is under pressure, as China sold a record $53.3 billion in Treasuries and agency bonds in the first quarter of 2024 alone, while simultaneously increasing gold purchases ^[4]. The trend reflects broader distrust in fiat currencies, with gold viewed as an honest form of money without counter-party risk, a perspective echoed by multiple analysts ^[5].

Central Banks Accumulate Gold as Holdings Approach Historic Levels

Central banks hold more than 36,000 tonnes of gold, approaching levels not seen since the Bretton Woods era, according to the ECB report. The World Gold Council reported that gold held by foreign central banks was near $4 trillion in January, exceeding their $3.9 trillion in U.S. Treasuries, as noted in the NaturalNews.com report ^[1].

Sustained buying by China, Poland, Turkey and India helped reshape portfolios, with Tether buying over 100 tonnes in 2025, according to market sources cited by the ECB. The accumulation reflects a broader recognition that “IOUs from governments – no matter how powerful – are not secure investments for the long term,” as stated in a “Brighteon Broadcast News” analysis ^[6].

Over the past century, the US dollar has lost 99% of its value against gold, with the gold price rising from $20.67 per troy ounce in 1932 to over $2,067 in 2020 ^[7]. That decline has accelerated: Gold prices recently traded near $4,464 per ounce, reflecting continued erosion of purchasing power. As one commentator noted, “It now requires U.S. $4,000 to purchase one ounce of gold,” underscoring the dollar’s devaluation over time ^[8].

Implications for Global Markets and International Monetary System

The trend carries implications for financial markets and the international monetary system, the ECB said. The euro’s international role has grown, with euro-denominated debt issuance rising 30% to nearly €1 trillion, and foreign investors adding a net €850 billion to euro-area assets, pushing portfolio inflows near record levels.

Meanwhile, the U.S. has moved to strengthen its own financial position through measures such as the Genius Act and aggressive gold and silver reshoring, signaling a shift toward asset-backed stability as BRICS nations threaten dollar dominance with gold-backed settlement systems ^[9]. As one strategist noted, “The global shift to gold reflects a broader recognition that IOUs from governments – no matter how powerful – are not secure investments for the long term” ^[8].

The dollar remains the largest reserve currency, but its share is declining. The ECB report concluded that the shift toward gold and other assets is likely to continue, driven by ongoing geopolitical tensions and the desire for portfolio diversification.

Conclusion: A Structural Shift in Global Reserve Holdings

The ECB report confirms a structural shift in global reserve holdings that has been underway for several years. Central banks are increasingly prioritizing gold over U.S. Treasuries, driven by geopolitical risks and the desire to reduce reliance on the dollar.

While dollar-denominated assets still constitute the largest share of reserves, the trend toward gold accumulation shows no signs of slowing. As one financial analyst observed, “gold and silver provide a tangible store of value that continues to appreciate over time” compared to depreciating fiat currencies ^[6]. The implications for global markets include potential upward pressure on gold prices, reduced demand for U.S. Treasuries and a gradual reshaping of the international monetary system.

References

1. Ava Grace. “Gold Dethrones Treasury Bonds as Largest Foreign Reserve Asset After 30 Years.” NaturalNews.com. January 15, 2026.
2. Mike Adams interview with Andy Schectman. September 27, 2023.
3. “Washington’s Sanctions Gamble Backfires Leaving a Golden Russia and a Broken Dollar.” NaturalNews.com. January 22, 2026.
4. Richard Brown. “DOLLAR DEMISE: China Selling U.S. Treasury Bonds in Record Numbers in Favor of Gold, Other Commodities.” NaturalNews.com. May 24, 2024.
5. Mike Adams interview with Andy Schectman. October 1, 2024.
6. Mike Adams. “Brighteon Broadcast News – FINANCIAL END GAME.” Brighteon.com. September 9, 2025.
7. “US dollar devalues by 99 vs gold in 100 years — gold price crosses 2067.” NaturalNews.com. August 10, 2020.
8. Mike Adams. “Health Ranger Report – ISRAEL.” Brighteon.com. October 9, 2025.
9. Finn Heartley. “U.S. Monetary Policy, Rare Earths Trade, and BRICS Shifts Impact Global Finance.” NaturalNews.com. October 22, 2025.

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