A discreet but historic shift has occurred in central bank reserves. For the first time in nearly 30 years, gold surpasses U.S. Treasury bonds. This adjustment, far from trivial, reflects a growing loss of confidence in U.S. sovereign debt. Behind this choice, central banks are reshaping their priorities, betting on the timeless strength of the yellow metal. This signal, almost unnoticed, could redefine the foundations of the global monetary system.
While tokenized gold surpasses the billion-dollar daily volume threshold, a data point surprised even the most seasoned analysts this October. Foreign central banks now hold more gold than U.S. Treasury bonds, a situation unprecedented since the mid-1990s.
The chart published by Barchart on October 26 confirms this symbolic but highly significant reversal. It represents a discreet yet fundamental break in reserve logic.
This shift is based on a particularly sustained gold buying dynamic over several years, which intensified throughout this year. Here are the main figures provided by the World Gold Council :
In other words, this is not an isolated peak or a short-term tactical repositioning. It’s a deliberate, coordinated, and sustainable strategy reflecting a redefinition of gold’s role as a trust anchor in an increasingly uncertain macroeconomic context.
Behind these accounting decisions lie deeper geopolitical and strategic choices. Macro-analyst Sunil Reddy speaks of a paradigm shift : “when these balances nearly vanished, gold skyrocketed… Capital seeks what cannot fail: strong currency. Gold is no longer just inflation protection; it becomes precious collateral, the asset of last trust.”
For him, the recent gold rise does not simply stem from an inflationary environment but from a sharp drying up of secure liquidity once embodied by Treasury bonds.
At the same time, this shift to hard assets does not go unnoticed in the crypto ecosystem. Investor and crypto analyst Lark Davis highlighted an intriguing correlation. While gold experienced a 5 % drop, its worst day since 2013, bitcoin gained 3 %.
According to him, “If BTC captures even a fraction of gold’s market cap, it could mark the start of an insane rally… 1 % equals $134,000, 3 % $188,000.”
Mister Crypto echoes this: “digital gold is next.” Even though the brutal gold selloff seems to have been triggered by technical mechanisms, a massive sale of ETFs triggering automatic orders, Chinese institutional investors have continued to increase their exposure. No structural withdrawal signs appear on the physical gold side.
This shift of institutional capital toward assets considered “non-failing” could well redefine the axes of trust on which the global monetary system relies. Gold regains its status as a tangible anchor in a liquid and over-indebted world. However, while central banks reaffirm their preference for gold, individuals may soon turn to its digital equivalent. Bitcoin, still on the sidelines of these macroeconomic arbitrages, may be waiting for its moment. Far from being a mere speculative asset, it could become, for a growing portion of investors, the ultimate asset of decentralized trust that will join gold in central banks’ balance sheets.
