Central Banks Hold $4T in Gold vs $3.9T in US Treasuries First Time Since 1996

Central bank gold holdings have quietly moved ahead of US Treasuries in global reserves. This shows a shift that has not been seen in nearly three decades. The change is not sudden, but it is notable. After years of steady buying and a strong run in prices, gold now makes up a larger share of foreign reserves than US government debt. The numbers point to a broader adjustment in how central banks are managing risk and diversification.

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Foreign Gold Reserves Hit $4T vs $3.9T in Treasuries as De-Dollarization Accelerates

Estimates from industry data show central banks now hold about $4 trillion in gold reserves, compared with roughly $3.9 trillion in US Treasuries. This is the first time since 1996 that gold has overtaken Treasuries in reserve composition.

The shift has been building for years. Central banks have been net buyers of gold for 16 consecutive years. Purchases reached a record 1,136 tonnes in 2022, based on World Gold Council data. It has remained elevated through 2023 and 2024. Early projections suggest buying could stay strong in 2026, close to 900 tonnes.

This consistent accumulation has gradually increased gold’s share in global reserves, while holdings of US Treasuries have edged lower over time.

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Why Central Banks Are Adjusting Reserves

Part of the shift ties back to risk management. The freezing of around $300 billion in Russian central bank assets in 2022 prompted many countries to reassess exposure to dollar-based assets.

Gold, unlike US Treasuries, does not carry counterparty risk and cannot be frozen or restricted in the same way. This has made it more attractive as a reserve asset, mostly for emerging markets.

In addition, there is also a bigger move toward de-dollarization. A survey cited by Firstlinks found that 76% of central banks expect to increase their gold reserves over the next five years. Meanwhile, 73% expect their dollar holdings to decline.

Who is buying and what it means

Recent data shows countries such as Poland, China, Kazakhstan, and Uzbekistan continuing to pocket gold. Some, including Turkey and Russia, have sold at times due to domestic pressures. But overall demand remains strong.

Gold now represents roughly a quarter of official reserves globally and accounts for nearly one-fifth of all gold ever mined.

The shift doesn’t mean US Treasuries are losing their role entirely. They remain one of the most liquid assets in global finance. But the balance is changing, and central banks appear to be spreading their reserves more widely than before.

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