Posted on 04/27/2026 10:26:15 AM PDT by delta7
the first time since 1996, foreign central banks now hold more gold than U.S. Treasuries (U.S. debt) in their reserves, marking a historic turning point in global reserve management. Data published by Visual Capitalist reveals that, in the course of 2025, the share of gold in central bank reserves surpassed that of U.S. debt holdings, a trend driven by rising geopolitical uncertainty and a quest for asset diversification.
Between 2021 and 2025, central banks - particularly in emerging markets like China, India and Turkey - significantly increased their gold holdings. This move reflects a broader strategy to reduce reliance on the U.S. dollar, undermined by soaring debt levels and geopolitical tensions. Gold, seen as a durable, portable and neutral asset, has become a preferred hedge against currency volatility and inflation.
At the beginning of 2026, gold prices surged to record highs as demand for safe-haven assets intensified.
Gold holdings overtaking U.S. Treasuries signals a rebalancing of global reserves, with implications for the dollar's global dominance. As central banks diversify their reserves in an era of economic and political uncertainty, gold’s timeless appeal as a store of value is stronger than ever.
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Perhaps the VALUE of the gold has increased over the value of the dollars.
You could have exactly the same amount of gold and dollars, and if the price of gold increased, its value might become greater than the value of the dollars. The amount of gold wouldn’t have to change.
Good point. And it bears mention that gold on the books of central bank and national treasuries does not earn interest.
No, it does not earn interest; but it does appreciate vs other kinds of “assets”.
Just as in the BRICS pressure on the dollar fell short, when the gold boom is bust, economies matter more than reserves.
and the US economy has weathered many a storm...
All the world’s currencies are declining , together. Critical thinking shows Gold is not rising, but paper currencies are crashing....anything and everything priced in paper ( dollars) is skyrocketing.
In 2001, it took 275 US paper dollars to buy an ounce of Gold- Gold hasn’t changed for 5,000 years- today with the devaluing USD, it takes 4,770 US paper dollars to buy an ounce of Gold.
Most can not wrap their head around this: Goods and services priced in Gold ( and Silver) has never been cheaper! I will let you figure out what economists ( and now the world’s biggest money: Central Banks) have known for centuries.
Gold Price Performance USD
Change Amount %
Today -13.39 -0.29%
30 Days +167.98 +3.71%
6 Months +728.31 +18.36%
1 Year +1,359.59 +40.75%
5 Year +2,913.64 +163.50%
20 Years +4,050.07 +627.28%
goldprice.org - 13:49 NY Time
Honest money, no counter party risks, bankruptcies, or claims...been that way for centuries.
Hint: Physical Gold is now deemed ( since last year, codified into international law) the Tier One asset with the BIS and International bank, not equities, not Bitcoins, Gold deemed a Tier One HQLA, ( high quality liquid asset)...choose wisely.
The cycles are your friend...nothing lasts forever, except for Gold.
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Gold may appreciate, but that value cannot be captured unless it is sold. Interest earned on US treasuries though is steady income.
I had a relative who invested heavily in energy stocks. He always said that he didn’t give a rip about the stock price. All he looked at was the dividends.
Interest (4 percent) earned in ever devaluing dollars, I will take PM’s gains any day....and by the way, those devaluing interest payments ( don’t even track real inflation) are just promises to pay...we are in historic times.
Choose wisely, we have entered another proven cycle. Good Luck!
Gold is still determined in worth by applying paper money. Otherwise, it is still a rock.
wy69
Not necessarily. After WW II, under Eisenhower, the US used its post war boom to reduce its public debt load. If another boom can be generated by technological innovation and better public policy, the same choice can be made.
The war was the reason for the boom. We were the only industrialized nation that was still intact.
40+ years ago, revenue flooded in via President Reagan’s supply-side economics. Result: Congress’ spending soared to record deficits.
WWII and Eisenhower was relative eons ago and well before the world went off the Gold Standard, thereby thrusting funny fiat money on all.
I rate today’s modern Congress or any such sovereign body being to responsibly handle a deluge of AI or other riches as remote. All are too conditioned to borrow and spend. If there’s no borrowing required for a period, so much the better, they’d say.
You’re talking my language. Thanks.
That’s why you hold metal until you need some proceeds.
What you say is true. I remember gold running around $200-$375 from the 80’s all the way to the early 2000’s.
Gold hasn’t gone up, our money is increasingly worthless.
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