For the first time in nearly three decades, the world’s central banks collectively hold more gold than US government debt — a milestone reflecting a deliberate, accelerating shift away from dollar-denominated assets.
Gold now accounts for 24% of global central bank reserves against 21% for US Treasuries, according to Bloomberg data, with total gold holdings reaching approximately $4 trillion versus $3.9 trillion in US bonds. The crossover occurred late in 2025. In Q4 2015, the split was nearly the reverse: Treasuries at 33%, gold at 9%.
The catalyst was 2022, when the US and its allies froze approximately $300 billion in Russian central bank assets following Moscow’s invasion of Ukraine. The message to reserve managers was unambiguous: dollar-denominated assets could be seized. Gold — immune to sanctions, carrying no counterparty risk — became the strategic alternative.
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The World Gold Council recorded 863 tonnes in central bank gold purchases in 2025 — below the 1,000-tonne pace of the preceding three years but still the fourth-largest annual expansion on record, and nearly double the prior decade’s average. The slowdown reflected surging prices, not waning interest. Poland’s central bank led all buyers, adding 102 tonnes and lifting its total to 550 tonnes — 28% of its reserves.
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China’s People’s Bank officially reported 27 tonnes, though the WGC noted that around 57% of total purchases last year went unreported, suggesting actual accumulation runs significantly higher.
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The WGC’s 2025 Central Bank Gold Reserves Survey — 73 responses, the highest since the survey began — showed 95% of central bank reserve managers expect global gold holdings to keep rising over the next 12 months. Not one respondent indicated any intention to reduce gold reserves. On the dollar: 73% expect its share of global reserves to be lower five years from now.
The dollar remains dominant in trade, commodity pricing, and financial contracts — its share of allocated reserves sits around 58%, down from 72% at the turn of the century. But as central banks reduce Treasury holdings, the US faces a concrete consequence: rising difficulty funding its fiscal deficits at low rates. Gold ended 2025 up nearly 70% — its best year since 1979 — and the institutional buying driving that rally shows no sign of stopping.
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