New Delhi : For the first time in over three decades, central banks around the world are holding more gold than US government bonds. This marks a major shift in how countries manage their reserves.
Traditionally, most nations kept their “treasure chest” of reserves filled with US dollars, some euros, and American government bonds, known as Treasuries, along with a smaller share of gold. But now, gold has taken the lead.
According to the European Central Bank’s ‘International Role of the Euro 2025’ report, central banks collectively hold around 36,000 tonnes of gold.
At current prices, this stockpile is worth over 3.6 trillion dollars. That is more than the 3.8 trillion dollars they hold in US Treasuries, based on the US Treasury’s June 2024 survey.
The change has been driven largely by gold prices, which have soared above 3,500 dollars an ounce this year, according to Reuters data.
The big question is why central banks are turning to gold. Experts point to three main reasons. First, gold cannot be frozen or seized.
After Russia’s dollar and euro reserves were blocked in 2022 following its war in Ukraine, countries began seeking “sanctions-proof” assets.
Second, concerns are growing about America’s rising debt levels, making many central banks cautious about keeping too much of their reserves in US bonds.
And third, diversification plays a role, as central banks want to spread risk by holding a mix of currencies and gold.
The numbers show how strong this trend has been. Data from the World Gold Council (WGC) reveals that central banks bought 1,082 tonnes of gold in 2022, 1,037 tonnes in 2023, and 1,045 tonnes in 2024.
These figures are more than double the annual purchases seen a decade ago. In 2025, the pace of buying slowed slightly but still remained high, with 244 tonnes added in the first quarter and 166 tonnes in the second.
Analysts at Metals Focus, a London consultancy, expect total purchases for the year to be around 1,000 tonnes.
Surveys also suggest this trend will continue. The WGC’s ‘Central Bank Gold Reserves Survey 2025’ found that 43 per cent of central bankers plan to add more gold in the coming year, while 95 per cent believe global gold holdings will keep rising.
India too has been steadily increasing its gold reserves. By March 2025, the Reserve Bank of India held about 880 tonnes of gold, making up around 12 per cent of the country’s total reserves.
For India, this strategy helps boost confidence in the rupee during times of currency volatility.
However, it also adds pressure at home, since higher global prices clash with the country’s traditionally strong domestic demand for gold.
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