Gold's Share Rises to 27%, Historically Surpassing U.S. Treasuries as the World's Largest Reserve Asset
Taylor Wilson
The ECB's latest report shows gold reached 27% of global central-bank reserves by end-2025, surpassing U.S. Treasuries at 22% for the first time — central banks are redefining what counts as a 'safe asset,' and they're doing it in bullion.
How did gold overtake U.S. Treasuries?
In one year, gold's share of global central-bank reserves jumped from 20% to 27%. Over the same period, U.S. Treasuries fell from 25% to 22%.
This means → the two lines crossed in 2025. Gold went from a supporting player to the single largest reserve asset class.
Gold prices nearly doubled over the past two years, hitting an all-time high above $5,500 per troy ounce in January — directly inflating the book value of gold reserves.
Is the dollar actually being abandoned?
Dollar-denominated assets still make up 42% of total reserves — the largest currency block by far. Euro-denominated reserves hold steady at 15%.
In plain terms = gold overtook one instrument — Treasuries — not the dollar as a whole. The dollar's reserve status has weakened, but it is nowhere near collapse.
This reflects a strategy of risk diversification, not wholesale dollar replacement.
Who is buying the most gold?
Since 2022, the largest gold accumulators have been China, Poland, Turkey, and India, in that order.
Central banks worldwide now hold over 36,000 tonnes of gold — approaching the ~38,000-tonne peak of the Bretton Woods era (the post-WWII system that pegged currencies to gold).
Net central-bank gold purchases totaled roughly 850 tonnes in 2025, slightly below the 1,000-plus-tonne pace of the prior three years.
Why is 2022 the turning point?
That year, the U.S. froze Russia's dollar reserves through sanctions — forcing many countries to reassess the risk of holding dollar assets.
This means → sanctions shattered the default assumption that "dollar assets = absolute safety." Countries began buying insurance against their own dollar exposure — and gold is that insurance policy.
ECB President Christine Lagarde wrote in the report: "Geopolitical tensions continue to drive strong central-bank demand for gold."
Why is Turkey now selling its gold?
Since the Russia-Ukraine conflict began in 2022, Turkey accumulated 220 tonnes of gold.
But in early 2026, as the Iran war erupted, Turkey sold or lent out roughly 130 tonnes — described by the ECB as "one of the largest reserve drawdowns in recent years."
In plain terms = gold reserves are not just for hoarding. In a crisis, they are for spending. Turkey's move proves gold's value as wartime hard currency.
What other signals stand out?
Stablecoin issuer Tether became the single largest gold buyer in 2025, purchasing over 100 tonnes — more than most sovereign central banks.
This reflects a shift in who buys gold. It is no longer a central-bank-only game; crypto giants are entering the market.
Meanwhile, the euro's international role expanded "gradually but steadily": euro-denominated international debt issuance grew 30% in 2025, reaching a record high of nearly €1 trillion.
Content is for reference only, not financial advice.