Significant Shift: Central Banks Now Hold more Gold than US Treasuries

For the first time since 1996, central banks worldwide hold more gold than US government bonds – a significant shift in foreign exchange reserves. Expert Tavi Costa of Crescat Capital, as he explained in an X-Post, sees this as the beginning of one of the biggest global realignments in recent times.

Officially, 36,344 tonnes of gold are now held in vaults (as of May 2025). In 2020 and 2021, central banks together purchased less than 1,000 tonnes; after which demand increased sharply: in 2022 it was 1,082 tonnes, in 2023 1,037 tonnes, and in 2024 a near-record 1,180 tonnes – significantly above the ten-year average of 400–500 tonnes.

Gold Now Accounts for 20% of Central Bank Reserves

Gold now accounts for 20% of reserves, placing it second behind the US dollar (46%) but still ahead of the Euro (16%). Recently, purchases slowed down somewhat: In the first quarter of 2025, 244 tonnes were added, and in the second, 166 tonnes.

Metals Focus expects an 8% decrease for the full year but still anticipates total purchases of 1,000 tonnes. And interest remains high: According to the WGC, 43% of central bankers plan to further increase their gold holdings in the next 12 months.

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