For the primary time because the mid-Nineties, international central banks have held extra gold than US treasuries. This milestone exhibits a big shift in how international energy views security, liquidity, and belief.
Past a market occasion, the quiet rotation from paper to metallic marks a possible turning level within the structure of worldwide finance.
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Gold Overtakes US Treasuries for the First Time in 30 Years
Information shared by Barchart confirmed the crossover, with central banks persevering with their record-breaking gold shopping for streak into 2025.
Based on the World Gold Council, central banks bought a internet 19 tonnes in August alone, after including 10 tonnes in July. With this, they set the yr on observe for roughly 900 tonnes in whole. It might mark the fourth consecutive yr that international purchases exceed twice the long-term common.
The Kobeissi Letter famous that central banks have purchased gold for 16 years. That is the longest streak on report and comes after these monetary establishments have been internet sellers for over 20 years earlier than 2010.
Central banks are shopping for unprecedented quantities of gold:
International central banks have purchased an annualized +830 tonnes of gold in 2025.
Within the first half of 2025 alone, 23 international locations elevated their gold reserves.
Central banks are actually on observe to purchase twice as a lot because the annual… pic.twitter.com/CPtK95R36X
— The Kobeissi Letter (@KobeissiLetter) October 25, 2025
Within the first half of 2025, 23 international locations expanded their reserves. “Central banks cannot stop buying gold,” Kobeissi wrote.
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The explanation runs deeper than inflation, with macro researcher Sunil Reddy highlighting that gold’s newest rise tracks the collapse of the Federal Reserve’s reverse-repo balances. That is the pool the place extra liquidity is used to park safely in a single day.
“When those balances nearly vanished, gold went vertical…Capital seeks what can’t default — hard money. Gold is no longer just an inflation hedge; it’s becoming pristine collateral — the asset of last trust,” he stated.
When Belief Falters, Exhausting Property Rise — and Digital Gold Awaits Its Flip
That belief hole is widening, with studies indicating that the US authorities now spends almost 23 cents of each greenback of income on curiosity. On the identical time, international confidence in Treasuries wanes amid political gridlock and debt escalation.
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Towards this backdrop, analysts say gold has not modified. Reasonably, it’s the measuring stick that’s collapsing. For the reason that Seventies, main currencies just like the British pound and Swiss franc have misplaced between 70% and 90% of their worth when measured in opposition to gold.
Nonetheless, even gold’s dominance faces new challengers. Crypto investor Lark Davis famous that whereas gold fell 5% final week, its steepest one-day drop since 2013, Bitcoin rose 3%.
“If BTC absorbs even a fraction of gold’s market cap, it could mark the beginning of an insane rally…1% equals $134,000, 3% equals $188,000,” he stated.
His view echoes Mister Crypto’s publish that “digital gold is next,” hinting at a rotation brewing beneath the floor.
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Nevertheless, if gold’s pullback seemed dramatic, insiders say it was principally mechanical. A big ETF (exchange-traded fund) block commerce that tripped algorithmic volatility triggers.
“Nobody important sold,” an analyst stated. Chinese language gold ETFs even added publicity in the course of the selloff.
All these taken collectively, the world’s financial guardians, comprising establishments that subject fiat foreign money, are shifting decisively into laborious property.
“If the people who control the money printer are stacking gold, what should the rest of us be stacking?” Crypto Jargon remarked.
This state of worldwide finance, the place central banks go from dumping gold for many years to now shopping for report quantities yearly, could outline the last decade forward for markets and for cash itself.
