Gold Now Makes Up a Bigger Share of Central Bank Reserves Than U.S. Government Debt

For the first time in roughly 30 years, central banks around the world are holding more value in gold than in U.S. government bonds. That’s a big shift in how countries protect their money and manage financial risk.

According to data highlighted by the World Gold Council, the total market value of gold held by central banks has now moved ahead of their holdings of U.S. Treasuries. This doesn’t mean countries dumped all their dollar assets. It means the balance has changed.

Why This Is Happening

1. Gold prices have surged.
Gold has hit record highs over the past couple of years. Even if central banks didn’t buy massive new amounts, the rising price alone increased the overall value of what they already own.

2. Countries are buying more gold on purpose.
Several nations, including China, India, and Turkey, have been steadily increasing their gold reserves. They want assets that are not directly tied to another country’s political or financial system.

3. Less comfort with heavy dollar exposure.
U.S. government bonds, issued by the U.S. Department of the Treasury, have long been considered one of the safest investments in the world. But growing U.S. debt levels, rising geopolitical tensions, and the use of financial sanctions have made some countries rethink how much they want tied to the United States.

Gold, unlike bonds, isn’t someone else’s liability. It’s a physical asset. There’s no government behind it that can freeze it, print more of it, or default on it.

What This Does Not Mean

This does not mean the dollar is finished or that U.S. bonds are suddenly unsafe. The dollar is still the main currency used in global trade and finance. Most international transactions are still done in dollars.

What this shift really shows is diversification. Central banks are spreading their risk instead of putting most of their reserves into one system.

The Bigger Picture

This change didn’t happen overnight. It has been building for years. But crossing this line — where gold’s value in reserves exceeds U.S. government debt — is symbolic.