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Key Points

For the first time in over 30 years, central banks worldwide now hold more gold than US government bonds. This historic shift has been driven by gold prices soaring above $3,500 per ounce and growing concerns about sanctions vulnerability. Countries are actively seeking "sanctions-proof" assets after Russia's dollar reserves were frozen in 2022. The trend shows no signs of slowing, with 43% of central bankers planning to increase gold holdings further.

Key Points: Central Banks Now Hold More Gold Than US Bonds First Time 30 Years

  • Gold holdings hit 36,000 tonnes worth $3.6 trillion surpassing US Treasuries
  • Driven by soaring gold prices above $3,500 per ounce
  • Sanctions fears after Russia's frozen reserves accelerated shift
  • Concerns over US debt levels prompting diversification strategy
3 min read

Central Banks now hold more gold than US bonds for 1st time in 30 years

Global central banks hold $3.6T in gold vs $3.8T in US Treasuries, marking historic shift driven by sanctions fears and debt concerns.

"43 per cent of central bankers plan to add more gold in the coming year - World Gold Council"

New Delhi, Aug 31

For the first time in over three decades, central banks around the world are holding more gold than US government bonds. This marks a major shift in how countries manage their reserves.

Traditionally, most nations kept their "treasure chest" of reserves filled with US dollars, some euros, and American government bonds, known as Treasuries, along with a smaller share of gold. But now, gold has taken the lead.

According to the European Central Bank’s ‘International Role of the Euro 2025’ report, central banks collectively hold around 36,000 tonnes of gold.

At current prices, this stockpile is worth over 3.6 trillion dollars. That is more than the 3.8 trillion dollars they hold in US Treasuries, based on the US Treasury’s June 2024 survey.

The change has been driven largely by gold prices, which have soared above 3,500 dollars an ounce this year, according to Reuters data.

The big question is why central banks are turning to gold. Experts point to three main reasons. First, gold cannot be frozen or seized.

After Russia’s dollar and euro reserves were blocked in 2022 following its war in Ukraine, countries began seeking "sanctions-proof" assets.

Second, concerns are growing about America’s rising debt levels, making many central banks cautious about keeping too much of their reserves in US bonds.

And third, diversification plays a role, as central banks want to spread risk by holding a mix of currencies and gold.

The numbers show how strong this trend has been. Data from the World Gold Council (WGC) reveals that central banks bought 1,082 tonnes of gold in 2022, 1,037 tonnes in 2023, and 1,045 tonnes in 2024.

These figures are more than double the annual purchases seen a decade ago. In 2025, the pace of buying slowed slightly but still remained high, with 244 tonnes added in the first quarter and 166 tonnes in the second.

Analysts at Metals Focus, a London consultancy, expect total purchases for the year to be around 1,000 tonnes.

Surveys also suggest this trend will continue. The WGC’s ‘Central Bank Gold Reserves Survey 2025’ found that 43 per cent of central bankers plan to add more gold in the coming year, while 95 per cent believe global gold holdings will keep rising.

India too has been steadily increasing its gold reserves. By March 2025, the Reserve Bank of India held about 880 tonnes of gold, making up around 12 per cent of the country’s total reserves.

For India, this strategy helps boost confidence in the rupee during times of currency volatility.

However, it also adds pressure at home, since higher global prices clash with the country’s traditionally strong domestic demand for gold.

- IANS

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Reader Comments

P
Priya S
Good to see RBI increasing gold reserves. In India, we understand the value of gold better than anyone. It's not just about investment - it's part of our culture and tradition. This strategy will help stabilize the rupee during uncertain times.
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Aditya G
The US debt situation is worrying everyone. When America keeps printing dollars and accumulating debt, it makes sense for countries to diversify. Gold prices may be high now, but it's better than holding depreciating paper assets.
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Sarah B
While diversification is good, I hope this doesn't lead to higher gold prices for ordinary Indians. Wedding season is coming up and gold is already so expensive! The government should find a balance between national reserves and public affordability.
V
Vikram M
This is a historic shift! For 30 years, the US dollar dominated global reserves. Now countries are waking up to the reality that they need assets that can't be weaponized against them. Gold is truly independent and sovereign.
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Nikhil C
Interesting to see India holding 880 tonnes. That's substantial but we should aim for more given our gold-loving population and economic size. Maybe we should also focus on developing our own gold mining industry instead of just importing.

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