Central banks ditch U.S. Treasuries for real metal, gold is still the king?

For the first time since the ’90s, central banks worldwide have flipped the script. They’re now hoarding more gold than U.S. Treasury bonds.

It’s like the global financial bosses have taken one look at Washington’s IOUs and said, nah, give me the gold.

Now experts say it’s a fundamental shift how nations protect their wealth.

Traditional treasury bonds

Analysts shared that as of mid-2025, central banks collectively hold around 36,700 tonnes of gold, worth $4.5 trillion.

Compare that with roughly $3.5 trillion tucked away in U.S. Treasuries. Gold now makes up about 27% of central banks’ reserves, kicking traditional treasury bonds well down the lineup.

The euro and other currencies look on at 16%, but gold? It’s the new champ of reserves. Again.

Why this golden frenzy? Central banks have been on a massive buying spree, snagging over 1,180 tonnes last year alone, more than double the average annual buys of the previous decade.

And it’s a sustained campaign, signaling deep doubts about the dollar’s future and America’s ballooning debt.

Geopolitics and reserve management

Think of it this way, when your business partner starts looking shaky, fiscal debt piling up, unpredictable policy moves, whispers of crisis, you don’t stick to promises. You want hard assets, insurance you can hold in your hand.

That’s the vibe central banks are feeling. Geopolitical tensions, inflation threats, and those endless U.S. fiscal showdowns have frayed nerves. Gold, as the ultimate survivor, catches the eye.

And it’s not just about gold anymore. Enter Bitcoin, the digital newcomer looking to sit alongside precious metals in the reserve halls.

The U.S. government launched its Strategic Bitcoin Reserve in early 2025, keeping seized bitcoin as a long-term asset, not a quick flip.

This signals a future where reserve management isn’t just about shiny metals but also cryptographically secure digital tokens.

Ditching paper promises

Experts say this trend is a psychological and strategic pivot, a clear signal that trust in fiat currencies and sovereign debt is creaking.

As Balaji Srinivasan pointed out, Bitcoin and gold are becoming central pillars of a new monetary age where transparency and security reign supreme.

And for investors? It’s a flashing neon sign that safe-haven assets have evolved, from gold bricks to digital coins, both staking claims in the war against inflation and instability.

So, central banks are rewriting the playbook, or returning to the old ways, ditching paper promises for gold bars and digital ledgers.

It’s a reset in global finance reminding us that when the going gets tough, the tough reach for the tangible and the transparent.