U.S. Treasuries have sat at the center of the global financial system for decades. When nations needed a safe place to store value, they turned to American government debt. Or so it was until now. That bedrock assumption has changed in a historic way.

For the first time in nearly 30 years, gold has overtaken U.S. Treasuries as the world’s largest foreign reserve asset. According to data from the World Gold Council, foreign central banks now hold nearly four trillion dollars in gold, slightly more than the value of U.S. Treasuries they hold. The last time gold held this position was 1996.¹

So how did gold end up back on top? By offering central banks a proven safe haven as they brace themselves for long term global economic upheaval.

Rising Prices, Long-Term Buying

Gold prices have surged sharply. The metal crossed $4,500 per ounce during an end of year rally, recently breaking a record $4,600 per ounce. In 2025 alone, gold gained nearly 70 percent, driven by geopolitical tensions and growing concerns over U.S. fiscal stability. In early 2026, prices rose another 3.6 percent, continuing that momentum.²

Rising prices help explain why gold has climbed in reserve value, but they do not explain why central banks continue buying even at record price levels. The World Gold Council forecasts net central bank purchases of 1,000 tonnes in 2025. Gold purchases by central banks rose 10 percent year over year through September 2025. Analysts don't see this as a passing trend. Instead, this is an actual structural shift in global reserve holdings.³

Why Governments Are Reducing Dollar Exposure

Central banks don't chase market highs. Loading up on gold during a price spike tells you they are focused on decades, not days.

One major driver behind this trend is de-dollarization. Many governments are reducing exposure to dollar-denominated assets by increasing their gold reserves. This reflects growing concern about political polarization and the long-term credibility of U.S. policy.

JP Morgan noted that increased polarization in the United States could jeopardize governance, which underpins the country’s role as a global safe haven. Raphaël Gallardo, chief economist at Carmignac, stated, “The dollar is losing credibility as the nominal anchor of the global monetary system because the Fed is losing credibility, and US Congress is losing its credibility.”^4,5

The dollar’s share of global reserves has fallen from 71 percent two decades ago to 58 percent today.⁶

Sanctions, Repatriation & Control of Assets

Another turning point came after Russia’s invasion of Ukraine, when roughly $300 billion in Russian reserves were frozen. That action forced central banks worldwide to reshape thinking around the weaponization of reserves and to reconsider where their gold is stored.

As a result, repatriation has accelerated. Countries including Serbia, India, Hungary, Turkey, and Germany have demanded their gold back from overseas vaults. Poland retrieved hundreds of tonnes from London, the United States, and Canada. Venezuela’s gold remains locked in the Bank of England amid political disputes, reinforcing concerns around access and control.

Why Gold’s Role Keeps Growing

Gold’s appeal rests on simple facts. It carries no counterparty risk. It does not depend on fiscal policy. It is not tied to any government’s debt. Over the past four years, central banks have increased gold purchases to hedge against geopolitical fallout and currency risk.

Gold now represents more than a quarter of total central bank reserves, double its share from a decade ago. In mid-2025, gold overtook the euro to become the second most important reserve asset after the dollar.

Private Institutions Follow the Same Playbook

Governments aren't the only ones joining this movement. Non-state buyers are playing a growing role. Sovereign wealth funds, corporations, technology firms, and stablecoin issuers are entering the gold market in size. Their participation reflects a broader demand shift driven by currency volatility and geopolitical uncertainty.

One example is Tether, which purchased 26 tons of gold in the third quarter of 2025, more than any reporting central bank during that period. Its total gold holdings reached 116 tons, placing it among the world’s top 30 holders. These purchases were funded from profits, not customer-backed reserves. Tether’s CEO stated the company invests in safe assets like gold to support long-term resilience.⁷

What This Means for American Savers

This activity underscores a larger point. Gold is no longer treated as a fringe asset. It is increasingly viewed as a form of insurance by institutions with the resources to analyze risk across decades.

American families face many of the same pressures shaping these global decisions. Inflation reduces purchasing power. Market volatility can erode retirement savings. Political uncertainty creates long-term risks that are difficult to predict. While individuals do not manage national reserves, they still need protection against the same forces.

When central banks, governments, and large institutions move together, it is worth paying attention. Gold’s rise in global reserves reflects preparation, caution, and a desire for stability in an uncertain world.

Learn More About Physical Gold

For Americans who want to understand how physical gold can protect their savings, education is key. Contact American Hartford Gold to speak with a specialist and explore your options.
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Max Baecker is the President of American Hartford Gold (AHG), the nation’s largest retailer of precious metals. He leads American Hartford Gold’s mission to help clients achieve long-term financial security with physical gold and silver.

Under his guidance, American Hartford Gold has delivered billions of dollars’ worth of precious metals to thousands of satisfied clients.

Max's dedication to upholding American Hartford Gold's industry-leading standards is reflected in its accolades. American Hartford Gold has made numerous high-ranking appearances on the prestigious Inc. 5000 List of America’s Fastest-Growing Private Companies. AHG holds an A+ Rating from the BBB and a 5-Star Rating on Trustpilot from thousands of American Hartford Gold reviews. American Hartford Gold is the only precious metals company trusted and recommended by Bill O’Reilly.

AHG offers investment-grade gold and silver coins and bars at competitive prices. Clients also benefit from its buy-back commitment with no back-end fees. To learn more, visit American Hartford Gold.

Notes

1. https://economictimes.com/news/international/us/gold-overtakes-u-s-treasuries-as-the-worlds-largest-foreign-reserve-asset-in-2026-can-gold-challenge-the-u-s-dollars-dominance-and-hold-its-ground/articleshow/126420128.cms

2. https://www.mining.com/web/graphic-record-start-to-2026-brings-prospect-of-5000-gold-price-into-view/

3. https://www.gold.org/goldhub/research/gold-demand-trends/gold-demand-trends-q3-2025/central-banks

4. https://www.jpmorgan.com/insights/global-research/currencies/de-dollarization

5. https://time.com/7343169/top-10-global-risks-2026/

6. https://www.perplexity.ai/search/what-is-the-highest-forecast-s-74LTmPFbSei9BjFaKQ6DTA#:~:text=2%20sources-,tass,for%20more%20global%20FX%20reserves%20than%20Euro%2C%20Yen%20and%20Pound%20combined

7. https://phemex.com/news/article/tether-acquires-26-tons-of-gold-in-q3-2025-total-holdings-reach-116-tons-42211