Central Banks Now Hold More Gold Than U.S. Treasuries

Quick overview

Record gold prices have revived the precious metal’s role as a global reserve asset, marking one of the most striking financial shifts of the decade.

Gold’s surge to all-time highs this year has not only boosted the portfolios of investors—such as those holding global gold ETFs—but also transformed the balance sheets of central banks, which have been steadily increasing their gold holdings in recent years. This trend, combined with broader economic, financial, and geopolitical dynamics unfolding over the past few decades (and especially in recent years), has led to a symbolic milestone: for the first time since 1995, central banks now hold more gold in their reserves than U.S. Treasury securities.

Gold’s share of global reserves rose from around 33% in 1971—when the Bretton Woods system and the dollar’s convertibility to gold were abolished—to over 60% by the end of that decade. But starting in the 1980s, as central banks began to tame inflation following the oil crisis, the trend reversed. U.S. Treasuries became the preferred reserve asset, eventually representing more than one-third of total reserves, while gold’s share fell to just about 10%.

Now, central banks have crossed a symbolic line: their combined gold reserves exceed their holdings of U.S. Treasuries for the first time in nearly three decades. The shift highlights a gradual diversification away from dollar-denominated assets and toward tangible stores of value.

Macro Context for Gold

After the collapse of Bretton Woods, soaring real interest rates and the rise of the petrodollar drove reserve managers toward U.S. Treasuries throughout the 1980s and 1990s. In the 2000s, the dollar’s depth and liquidity reinforced that preference. However, since 2022, official gold purchases have surged once again—1,136 tons that year alone, a record—with historically strong accumulation continuing through 2023 and 2024, and remaining robust in 2025.

Shocking Figures and Importance

What’s even more striking is that nearly one-fifth of all the gold ever mined is now held by central banks. As political uncertainty and geopolitical risks continue to fuel demand for safe-haven assets, this buying momentum has also lifted prices: gold surpassed $4,000 per ounce for the first time in October 2025.

This crossover with U.S. Treasuries signals that reserve managers are increasingly prioritizing durability, portability, and neutrality over yield. According to the International Monetary Fund (IMF), gold’s share of global reserves rose to about 18% in 2024—a sharp increase from mid-2010s levels—reflecting a structural reallocation toward tangible assets.

ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.

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