Gold Overtakes US Bonds as Central Banks’ Largest Reserve Asset
The last time this happened was in 1996. According to a recent report by the European Central Bank, gold accounted for 27% of central bank reserves worldwide at the end of 2025, while US Treasuries fell to 22%. Gold has thus officially become the world’s largest reserve asset – what is behind this, and what does it mean for the gold price?
27% vs. 22% – a shift last seen in the 1990s
According to the ECB report, the mix of central bank reserve assets has changed significantly over the past year:
| Reserve asset | End of 2024 | End of 2025 |
|---|---|---|
| Gold | 20% | 27% |
| US Treasuries | 25% | 22% |
Gold has thus overtaken US bonds as the most important component of global currency reserves for the first time since 1996. ECB President Christine Lagarde links this shift mainly to persistent geopolitical tension in the world.
Why central banks prefer gold to “risk-free” debt
Gold itself generates no interest or cash flow – unlike government bonds. Even so, central banks have long been adding to their holdings: net purchases reached 850 tonnes in 2025, after three years in which annual purchases exceeded 1,000 tonnes. According to a survey of reserve managers, 89% of them also expect global gold reserves to keep growing over the following 12 months. The main reasons – diversification away from the dollar, protection against geopolitical risk and gold’s long-term role as a store of value – are discussed in detail in the article Why central banks buy gold.
What the shift in reserves means for the gold price
Central bank demand has long been one of the main factors pushing the gold price up – record purchases in recent years have helped lift the gold price significantly. A closer look at where analysts think the price could go next can be found in the article Central banks bought 289 tonnes of gold in Q2.
What to take away as a private investor
When institutions whose job is to manage reserves as prudently as possible prefer gold to “safe” government debt, it says a lot about confidence in today’s monetary system. Physical gold need not be a topic only for central banks – private investors can also buy investment gold bars or investment gold coins and start building their own reserve on logic similar to that of central banks.
Frequently asked questions
What share of central bank reserves is gold now?
According to the ECB report, gold accounted for 27% of global central bank reserves at the end of 2025, while US Treasuries fell to 22%.
When did central banks last hold more gold than bonds?
The last similar situation was in 1996 – since then US bonds had outweighed gold in reserves.
How much gold did central banks buy in 2025?
Central bank net purchases reached 850 tonnes in 2025, after three previous years in which annual purchases exceeded 1,000 tonnes.
The figures come from publicly available sources (European Central Bank report, World Gold Council) and are no guarantee of future developments.
About the author
HEFFO, GOLDU’s blogger, sees everything in context. From a pile of global numbers and news, he fishes out what matters and adds a conclusion you would not have expected. The precision of his conclusions and his love of chocolate suggest he has lived in Switzerland for years.
